1.2. Neo nominated her aunt, Sina, as the beneficiary of her life insurance policy. Unbeknown to Neo, her aunt had died the month before the nomination form was completed. Neo also died two months after signing the beneficiary form. Select the correct answer. A. Sina's estate will be re-opened by her executor to receive the proceeds of the policy. B. The proceeds of the policy will be paid to Sina's heirs according to the Intestate Succession Act. C, The proceeds of the policy will be paid into Neo's estate. D. The proceeds of the policy will be paid to Sina's heirs according to the Intestate Succession Act. E. None of the above

In this scenario, because Sina, the nominated beneficiary, had already passed away before Neo completed the nomination form, the designation becomes ineffective. Since Neo subsequently died two months later, the life insurance policy proceeds cannot go to a deceased beneficiary. Therefore, the correct answer is: C. The proceeds of the policy will be paid into Neo's estate. This means Neo's estate will handle the proceeds as per her will or applicable intestate laws if no will exists. Understanding the implications of naming a beneficiary is crucial, as it can significantly affect the distribution of assets. If a beneficiary predeceases the policyholder, as seen in this case, it opens up complex legal pathways for the life insurance proceeds. Always ensure to review and update beneficiaries regularly to avoid such unintended consequences!