Beneficiary Requirements Handout
These are some
beneficiary requirements that a client may want to put
into a will or trust. Lawyers commonly use a 30-day
waiting period (or a waiting period of some other
duration up to 6 months). The other choices listed
below are ideas that I have come up with. Please let me
know if you have questions about any of the choices, and
whether you want to use any of them.
In order for a person (other than my
spouse) to be a beneficiary, he or she must meet the
(a) that person must be alive on the thirtieth
(30th) day after my death--counting the day I die as day
number one (except that personal possessions may be
distributed not subject to any waiting period).
(b) that person must not be residing in a mental
institution at the time of my death (if my executor in
good faith believes, after consulting with the person’s
doctor, that the person is incapable of living alone in
a house or apartment).
(c) that person and his/her spouse must not be
residing in a nursing home at the time of my death (if
my executor in good faith believes, after consulting
with the person’s doctor, that the person is incapable
of living alone in a house or apartment). This doesn’t
mean that all persons in a nursing home are
automatically not a beneficiaries; for example, person
recuperating in a nursing home to mend a broken bone,
recuperating from hip replacement surgery, or having a
“stay” in a nursing home but not “residing” there, shall
not automatically be disqualified as a beneficiary.
(d) that person must not be receiving hospice
services at the time of my death.
(e) that person must not have a bankruptcy
proceeding pending/active at the time of my death, if
the assets that such person would receive are less in
value than the person’s debt.
If a person does not meet all of the above
requirements, then my assets shall be distributed as if
such person predeceased me.
I would like to specifically state the
following. It is my desire that my assets not be used
to repay a designated beneficiary’s debt to the
government for Medicaid benefits received by such
person. It is also my desire that my assets not be used
to pay for the future nursing home expenses of a
designated beneficiary. Also, I do not want my assets
to be used to pay for the medical expenses of a
designated beneficiary that would either (a) not be
paid, or (b) would be covered by government benefits
(such as Medicaid).
My executor/trustee may ask each designated
beneficiary to sign an affidavit that none of the above
requirements excludes the person from being a