Life Insurance beneficiaries

by Guest » Mon Oct 31, 2011 09:29 pm
Guest

While going thru an extremely nasty divorce, a restraining order was in place to keep any spouse from changing or disposing of property. (life insurance was listed as marital property) Spouse changed beneficiaries anyway. When the divorce was final, spouse was ordered to make children irrevokable beneficiaries on all life insurance policies. He did not get this done before he died.
Court orders and other legal papers were sent in to the insurance company and they decided to award the children the insurance. Just as quick, the named beneficiaries on the policy, (the childrens aunts) filed claim to it and now it will be sent to interpleading.

The deceased was ill, and not in the proper frame of mind, he was heavily medicated and coerced into changing the beneficiaries initially to get revenge on the divorcing wife.
What is the best action to take in the interpleading, and what chance is it that the decision will be overturned?

Total Comments: 4

Posted: Wed Nov 02, 2011 12:51 pm Post Subject:

You don't mention what state this occurred in. Probate law will have something to do with the outcome. And so will family law.

The insurance company, although not obligated to honor the court order -- which created a legal obligation on the part of the spouse to comply or be held in contempt of court -- did the right thing under civil law. But in the absence of the family court order, it would have been the wrong thing to do under contract law.

The family court order will supersede contract law. Even if the insurance company rejected the claim on behalf of the children and paid the money to the named beneficiary, the children would have a civil claim against the aunt, based on the family court order, which would have to be enforced in favor of the children.

The insurance company simply "adjudicated" the matter by paying the money to the children.

However, you must respond to the aunt's claim in court. All you need to do is present the earlier family court order as proof that the insured/policyowner failed to comply with the court's order and you are demanding equitable relief (which has already been obtained in the payment of the insurance proceeds to the children) by asking the court to dismiss the aunt's petition. You are simply asking the civil/probate court to honor the existing family court order, which it has no power to vacate.

Unless the judge is an idiot, you will not lose. And if the judge is an idiot, it's unlikely that the appeals judge will also be one. If I knew which state was involved, I could probably locate some case law that supports your position.

Posted: Wed Nov 02, 2011 06:56 pm Post Subject: Life insurance

I am in Missouri. The insurance has not paid the benefits, they decided to send it to interplead. What do you mean by the family court order? I have the divorce decree which states that the children would be the beneficiaries. What else do I need?

Posted: Thu Nov 03, 2011 06:37 am Post Subject:

What do you mean by the family court order? I have the divorce decree which states that the children would be the beneficiaries.


The divorce decree was issued by the family court (as opposed to civil court or criminal court). You have what you need.

Posted: Sun Nov 27, 2011 06:25 am Post Subject:

Tough task. I think it will be very hard to fight this in court

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