If you were given a life insurance policy, can another family member cut it?

Since you are the beneficiary, you can do whatever you want with the money when your grandma dies. Your aunts have no power or authority to say what you can do with it. Even if they took it to court, they won't win.

Some things are still unclear.

1. Who does the policy cover if they die, you or your grandmother.?

2. Who owns the policy?

If the policy is on you or your grandmother no one else can touch the money.

Ownership is key because only the owner of the policy can make any changes to the policy. If you do not want to make any changes then that issue will not matter.

If you are the beneficiary then you are the person that will collect. You do not have to split it. The money is yours to do whatever you want. Of course you could help out with funeral expenses, or split it but that is all up to you. She left the money to you or whoever the beneficiary is.

You are over 18 and are an adult. No one can tell you how to spend "your money". Yes, you should not waste it. But that is up to you. Your aunts can not legally take anything away from your insurance proceeds. Exception would be if your grandmal's estate was named beneficiary. Hopefully not. If not, then they have no legal rights to your money.

You don't take out a policy on yourself with the CHILD as beneficiary. You take it out on the CHILD when they are born.

I think there's some confusion here.

But, assuming you're right - whoever the named beneficiary is on the policy, that's the person who the insurance company sends the check to. So no, they can't "cut" a policy they don't own. They can't change the beneficiary clause.

But I highly, highly doubt that policy is on your grandmother's life. It's MOST likely on yours. Which means, if you want to keep it, you'll have to take over and start paying it.

Your posting is unclear:

1. Who is the insured party?

2. Who owns the policy?

3. Who is the beneficiary?