my ex passed away and had our 14 year old son named as benef

by bjamm1972 » Wed May 27, 2009 01:15 am

My ex-husband passed away about a month ago. We just found out that my ex's dad was beneficiary with our 14 year old son as 2nd on the policy. My ex's dad passed away 2 years ago and that leaves our son as beneficiary on the policy (which is a large policy) we live in Illinois. What are the laws? What do I need to do?

Total Comments: 26

Posted: Wed Apr 20, 2011 04:02 am Post Subject:

my grandmother passed away a little over a year ago, but before she passed she asked me for my social security number address, bank and account number. She mentioned something about a life insurance policy and naming me as a beneficiary? Then someone my father (if thats what you want to call him) did something and signed it into his name and cashed it before i could get it... how do i go about finding out what happened and if i can sue my father?

Posted: Thu Apr 24, 2014 01:36 pm Post Subject: Terms of Policy (guaranteed interest)

This IS a VERY helpful blog - info in layman terms. One thing about group life insurance (hubby added supplemental Ins), the employee nor beneficiary(s) recv'd entire policy w/terms, tho' told hubby to ask for it bcus he's entitled to a complete copy, but he didn't. (In 1998 when hubby died my son was beneficiary at age 4.) Employer Plan Admin'tor called & told me I should keep my son's money in acct setup by ins co becus the policy terms guarantees a set interest rate % to be compounded qtrly 'til age of majority. The acct is considered a trust w/Ins co as trustee/fiduciary, acct must be FDIC insured, etc., (read ur state laws for specifics). Qs: 1- Can proceeds be transferred or sold w/o disclosure to a non-affiliated annuity com that's NOT FDIC insured to avoid paying guaranteed interest rate?; 2- Can acct funds be taxed (if transferred) by annuity comp - tho' never taxed by bank when opened? 3- Annuity company reduced interest rate when proceeds were transferred to them...I read that this violates UTC & is a breach of duties. I'm looking for an aggressive, estate attorney who is not scared to fight vs. 3 financial institutions (Annuity company, after taxing funds for 4 yers transferred acct to another bank, who never acknowledged their existence. This minor has been unjustly deceived.

Posted: Tue May 13, 2014 04:27 pm Post Subject:

acct must be FDIC insured, etc., (read ur state laws for specifics)

WRONG! FDIC is for member banks and is not available to insurance companies.

1- Can proceeds be transferred or sold w/o disclosure to a non-affiliated annuity com that's NOT FDIC insured to avoid paying guaranteed interest rate?

You are describing a "retained asset account" and technically it is the property of the insurance company. Can they transfer the asset to someone else? Yes, but they cannot change the original terms of the account.

2- Can acct funds be taxed (if transferred) by annuity comp - tho' never taxed by bank when opened?

All INTEREST paid from a retained asset account is taxable as income. The insurance company does not tax the money, the IRS does.

3- Annuity company reduced interest rate when proceeds were transferred to them

This would be a "breach of contract" issue, and may involve other legal issues.

Contact me via the "Send me your questions . . ." link below to discuss your situation confidentially.

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