4.5.3 Charities
We've all heard stories about someone who names his church or favorite charity as beneficiary in their will. The problem with that is a will can be contested. Family relatives may feel that "Uncle Charlie" really didn't know what he was doing or that he always meant to change it, or some other reason can be put forth. A life insurance policy cannot be contested. So if Uncle Charlie named a nonprofit organization as beneficiary in his life insurance policy, the estate will not inherit the funds and the organization would get the proceeds regardless of the will.
