If a parent nominates their life insurance to go to a child (assume adult child), would they need to stipulate what the life insurance proceeds is to be used for?
For example - Father nominates an adult child (whom is a dependent still living at home) as the beneficiary of the life insurance proceeds. The intended purpose of the life insurance was to pay off the family home mortgage. Does the child have to use the money for this purpose or could they use it for whatever they wanted? Where would the father have to stipulate the specific purpose of the proceeds? In the will?
For example - Father nominates an adult child (whom is a dependent still living at home) as the beneficiary of the life insurance proceeds. The intended purpose of the life insurance was to pay off the family home mortgage. Does the child have to use the money for this purpose or could they use it for whatever they wanted? Where would the father have to stipulate the specific purpose of the proceeds? In the will?