by clouderback » Thu Feb 25, 2010 06:34 pm
My brother passed away and had a life insurance policy that did not have a beneficiary listed. His ex-wife is deceased. He has a 14 yr old daughter which he has left his 401K and all other property to. He also has a life insurance policy that he wanted to leave to his parents but didn't mark it on the paperwork. Does it automatically go to his daughter?
Posted: Fri Feb 26, 2010 12:32 pm Post Subject:
Under circumstances when no beneficiaries are listed in the policy, the proceeds should go to the insured's estate. Thereafter the money should get distributed as per the state laws.
Posted: Fri Feb 26, 2010 01:01 pm Post Subject:
Agents...how is it possible that there is 'no' beneficary named when a policy is taken out? I understand how there could be one, and that bene dies, and if no contingent, but is it possible to purchase a life policy and 'not' name anyone?
Posted: Fri Feb 26, 2010 02:13 pm Post Subject:
It could be the case where the primarily beneficiar died and no contingent beneficiary was named--this is why contingents should always be named.
Or, it could be a group policy where the employee never filled out the paperwork. Strange, unlikely, but entirely possible.
As Steve has mentioned, the proceeds go to your brother's estate, which will now most likely create at least a small need to have the estate probated, by an attorney, if it hasn't already been opened--the estate I mean.
Since there's no legal directive for the money, other people could potentially lay claim to it--think intestate estate. My recommendation is be careful about the number of people with whom you have this conversation
Posted: Fri Feb 26, 2010 06:11 pm Post Subject:
Thanks for the help!
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