by Guest » Fri Jul 15, 2011 04:19 am
My childrens father has recently passed and he had life insurance which he left to his 5 children. He named his sister as the person who has control over money until kids reach 21. Can his wife change this? She is tryin to get control of it to take his 2 girls off and give their share to her girls. Can she change anything about his insurance? She wants to be the one who oversees money. can she do this?
Posted: Fri Jul 15, 2011 11:55 am Post Subject:
I'm sorry insurance will follow what has already been instructed by the policy owner. You can't really deceive his other 2 daughters this way. They must have their share of the insurance proceeds.
Posted: Mon Jul 18, 2011 11:13 pm Post Subject:
There's a lot going on here, and the details are far too vague for us to really give you advice. You either need to speak with someone--like sit down and discuss it style--or be willing to give us way more information about what is going on.
How was the money left (i.e. where is it now)? Are their trusts? If left to the children, in most states it ends up in a trust "overseen" by the state court system. If money was left to the sister with message that she would take care of the kids, the decision on what to do is entirely up to her.
Posted: Tue Jul 19, 2011 11:26 am Post Subject:
He named his sister as the person who has control over money until kids reach 21
In his will maybe, but not in his life insurance policy. The court is not bound to honor the testamentary declaration of a guardian/trustee/executor for the children and their money. If others challenge the fitness of the named individual, and the court agrees, the court will seek or name someone else to perform that responsibility.
The person who is overseeing ("has control over") the money for the benefit of the children has a FIDUCIARY RESPONSIBILITY to the children. This fiduciary has the right to be reasonably compensated for their effort. But if he/she uses that money for personal needs or other things that do not benefit the children directly (such as taking the children and their cousins and aunt to Disneyland using only the children's money), this is improper and the children would have the legal right to sue the fiduciary for their losses.
Collecting on a damage award, unfortunately, is often another story.
Posted: Tue Jul 19, 2011 01:43 pm Post Subject:
Collecting on a damage award, unfortunately, is often another story.
Just because it's illegal, doesn't mean there's much you can do about it. :wink:
Posted: Tue Jul 19, 2011 11:12 pm Post Subject:
That's not what I was saying. If, after the judgment is rendered, there is no money to recover, or a person files for bankruptcy to avoid the judgment, recovery will be difficult.
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