Contesting life insurance beneficiary: Proofs that you need

by Guest » Fri Sep 16, 2011 09:21 pm
Guest

My father recently passed i was informed that I was beneficiary on one policy. The other policy he had the beneficiary as my mother who is actually his ex wife. His current wife contested the policy, sent in a divorce decree and the life insurance company told he that she was denied. She is now contesting again and the life insurance company told her that there is nothing they can do because all they have record of is his ex wife's name as the bene. Along with the divorce decree she sent in copies of form that my father filled out splitting up the life insurance in different percentages between herself and all of us kids but he did the forms wrong the percentages were not right. She told me that if she is to get the money then none of us kids are getting anything! Is there ANYTHING SHE CAN SUBMIT to over turn the life insurance company's denied decision?

Total Comments: 56

Posted: Sat Sep 17, 2011 01:21 am Post Subject:

That's what lawyers are for...

Posted: Mon Sep 19, 2011 03:52 am Post Subject:

I don't think she can do much.
Were the change of beneficiary forms submitted to the insurance company? if not then I really don't think the insurer is going to change anything after the death of the policy holder just because your step mom wants so. she can definitely fight it but chances of her wining are slim.

Posted: Tue Sep 20, 2011 06:48 am Post Subject:

Along with the divorce decree she sent in copies of form that my father filled out splitting up the life insurance in different percentages between herself and all of us kids but he did the forms wrong the percentages were not right.


This is meaningless unless the "form" was the insurance company's change of beneficiary form and it was submitted to the insurance company before your father's death. If the "percentages were not right", the insurance company would not have accepted the change of beneficiary (as being defective) and would have returned the form to your father for his corrections.

Life insurance money cannot be designated or distributed to beneficiaries by the insurance company through any other means than a valid beneficiary statement. It cannot be done through a will or other document.

And in about 15 or 16 states, an ex-spouse is automatically disqualified as the beneficiary of his/her ex's life insurance upon the issuance of the divorce. But this does not eliminate the policyowner's right to (re)name a beneficiary.

Posted: Tue Sep 20, 2011 07:00 pm Post Subject: Life ins contested

My mom passed months ago left my brother and I beneficiaries. Changed from my dad who passed prior.
Mom also changed will and left my brother and I executors as well as heirs to estate. Three other siblings disinherited. Will being contested. Ins agent Life is being deposed. If I ever spoke to him via telephone on moms behalf. But the remainder of correspondence was done between the two mom and agent. What is the likelihood
Of this having anything to do with will. Mom knew her agent for many years, and they spoke often.
Please let me know your thoughts?

Posted: Tue Sep 20, 2011 08:53 pm Post Subject:

Your post is very cryptic and hard to follow. But life insurance beneficiaries are a matter of contract between the insured/owner and the insurance company, not a matter for the probate court -- unless there is no named beneficiary.

If your mother named you and your brother as beneficiaries, that's a done deal, and the money will be paid to the two of you without recourse by any other person.

As far as the estate is concerned, if probate court is involved, the decisions about property and other things (debts, etc) left behind by your mother will be made by the court in relation to the petitions submitted.

The court tries not to overturn wills and trusts unless there is clear and compelling evidence of fraud, coercion, or some other nasty business. So if there is no proof of that, the disinherited siblings will likely remain disinherited. However, you and your brother will probably need legal counsel to represent your side of the story.

Posted: Tue Sep 20, 2011 10:04 pm Post Subject: Contesting life insurance benifcary

MAX HERR.....

This is meaningless unless the "form" was the insurance company's change of beneficiary form and it was submitted to the insurance company before your father's death. If the "percentages were not right", the insurance company would not have accepted the change of beneficiary (as being defective) and would have returned the form to your father for his corrections.



The form he filled out was from the life insurance company. He filled it out wrong for the simple fact that he had the percentages all wrong they did not equal 100% They then sent him a letter stating that he filled it out wrong and to redo it. He then started filling out another form in which he never filled out all the way and never signed nor turned in.The first one he filled out he signed and sent in but he did it wrong! My question is now that my stepmother has an attorney and is fighting the claim..will the form he submitted (Which was done wrong and cleared as DEFECTIVE) hold any water? Also, This case is in Michigan and you stated that by law the EX is automatically disqualified. Even though she is disqualified but my father still has her on as a primary bene does that trump her being disqualified?

Posted: Tue Sep 20, 2011 11:45 pm Post Subject:

will the form he submitted (Which was done wrong and cleared as DEFECTIVE) hold any water?


Highly unlikely. Unless and until the insurance company receives a properly filled form, no changes will be made. If the insured has now died, the form cannot be submitted after-the-fact.

you stated that by law the EX is automatically disqualified


You misread my post. This is now true only in about 20 states. But, Michigan is one of those states that does automatically disqualify the divorced spouse as beneficiary at the moment the divorce is finalized. This is true even if the beneficiary statement is not changed after the divorce.

The policyowner may RENAME his/her ex-spouse as the "new" beneficiary after the divorce, but a failure to do this leaves the ex- separated from the life insurance money, too.

Posted: Wed Sep 21, 2011 03:11 am Post Subject:

Max... Ok well if Michigan is one of the states that automatically disqualifies the exwife then why would the insurance company DENY the current spouse on her claim? I spoke with several people at this insurance company and they all told me that they reviewed both change of bene forms and the divorce decree and their ruling after reviewing all of these items was that the current spouse was DENIED. They did inform me that under the ERISA act the spouse had the right to appeal in which she is doing now with an attorney. So if the change of bene form was filed out in correctly and my father is now deceased and my mother (the ex wife) is disqualified ...where does the money go? I am the contingent bene on this policy...would it go to me?

Posted: Wed Sep 21, 2011 07:24 am Post Subject:

I'm sure MaxHerr will shortly provide the correct information needed by you.

Meanwhile, as I can think of, you may not receive the proceeds. As your mom and your dad's second wife, both are alive.

If the insurance company chooses not to give the benefits to the current spouse, it'll go to your mother.

On the other hand, if the current spouse does win the case, which I doubt she will (I may not be correct), then obviously it'll go to her.

In both the cases, the chances of the benefits going to you are very slim.

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