Minor child contingent beneficiary

Message Author
ampm-bookmark
delicious-small Add to delicious
yahoomyweb-small Add to YahooMyWeb
blinklist-small Add to BlinkList
PostPosted: Fri Jun 19, 2009 8:48 pm   Post subject: did anyone ever come to the conclusion whether or not a mino  

there must be something that can be deone....i am in a stick situation right now too

bjamm1972
New member
Leave a quick message



Joined: 27 May 2009
Posts: 13


7.29 Dollars($)

PostPosted: Fri Jun 19, 2009 8:52 pm   Post subject: Minor child contingent beneficiary  

has anyone ever found out if a minor child has any rights to the benefits of his deceased fathers life insurance policy, if he is not the first beneficiary on the policy.

bjamm1972
New member
Leave a quick message



Joined: 27 May 2009
Posts: 13


7.29 Dollars($)

PostPosted: Fri Jun 19, 2009 9:59 pm   Post subject:   

If he's not the 'first' beneficary, then are you saying the child was a contingent beneficary? If so, and the primary beneficary is alive, then no he has no rights to the proceeds of the policy...If on the other hand there is more than one person named as primary beneficarys then there would be an equal division of those beneficarys...



Please explain what you mean by

Quote:
if he is not the first beneficiary on the policy.


_________________

"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr.
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Sat Jun 20, 2009 4:25 am   Post subject:   

Bjamm,



You meant in your initial post that the primary beneficiary of the policy, i.e. you ex's father-in-law died before your husband, therefore your son autometically became the primary beneficiary of the policy if no-one else was named during this period. Your son then would be the rightful receiver of the death benefit.



Now, have you been told differently by anyone else? Is there anyone named as primary beneficiary in the policy?



You need to tell us lot more about your situation for us to help you. Please get back to us soon.

jeorge
Senior member
Leave a quick message

jeorge

Joined: 07 Oct 2005
Posts: 798


132.85 Dollars($)

PostPosted: Sat Jun 20, 2009 6:29 am   Post subject:   

Hi blamm1972..



I guess you're here to know something regarding a minor driver. But would you please post it within the "Message Body" box?



Steven

steven
Senior member
Leave a quick message

steven

Joined: 02 Feb 2006
Posts: 1546


215.89 Dollars($)

PostPosted: Sat Jun 20, 2009 6:37 am   Post subject:   

Quote:
I guess you're here to know something regarding a minor driver. But would you please post it within the "Message Body" box?




No, she was here to know about her son's rights as the secondary beneficiary on his father's life insurance. If you check in link in my post you would know.
jeorge
Senior member
Leave a quick message

jeorge

Joined: 07 Oct 2005
Posts: 798


132.85 Dollars($)

PostPosted: Thu Jul 16, 2009 7:04 am   Post subject: Minor child as contingent beneficieary  

The policy owner also may designate a contingent beneficiary who will receive the policy proceeds if the primary beneficiary should die before the insured. A contingent beneficiary, sometimes referred to as a secondary beneficiary or successor beneficiary, can receive the policy proceeds only if all designated primary beneficiaries have predeceased the insured. The policy owner can name any number of contingent beneficiaries and may decide how the proceeds are to be divided among the contingent beneficiaries. & if the minor children could be survivors, then a trustee contingent beneficiary should be named .


_________________
Register Now to have your Insurance queries solved.
P.H.Satish
Guest







PostPosted: Tue Jul 21, 2009 7:30 pm   Post subject: Contingent beneficiary question  

The father named a primary (wife) and a contingent (his sister) as the beneficiaries to a life insurance policy. In the interim, he and the wife divorced. At the time the policy was taken, the 2 children were minors. The father recently passed away and now the children (adults) want the proceeds of the life insurance policy. The ex-wife is still named as the primary beneficiary but is not entitled as she was not redesignated. All of the father's other assets were designated to the two adult children equally. What are the legal chances of contesting the contingent beneficiary by the two adult children?


_________________
Register Now to have your Insurance queries solved.
abc123
Guest







PostPosted: Tue Jul 21, 2009 7:54 pm   Post subject:   

abc123, there is a whole bunch of irrelevant information in your post.



Let's look at the relevant information.

1)The insured is dead.

2) The primary beneficiary, his ex-wife, is alive.



The ex-wife will get the death benefit.

InsuranceExpert
Senior member
Leave a quick message



Joined: 05 Apr 2009
Posts: 662


142.73 Dollars($)

PostPosted: Tue Jul 21, 2009 9:03 pm   Post subject:   

Quote:
abc123, there is a whole bunch of irrelevant information in your post
Doesn't hurt a bit abc to include all info you want to share...personally give me too much information rather than not enough.. Wink





Quote:
now the children (adults) want the proceeds of the life insurance policy.
As Ins Exp has said, they can want all they want, but unless the ex-wife gives it to them, their most likely out of luck...
Quote:
The ex-wife is still named as the primary beneficiary but is not entitled as she was not redesignated.
Now what makes you think he had to 're' designate her as beneficary? Is this a life policy that the 'father' had with his employer? If so those some times are different. Or are you just assuming this? Has someone from the insurance company said that to you?
Quote:
All of the father's other assets were designated to the two adult children equally
It's a darn shame he forgot about this policy...
Quote:
What are the legal chances of contesting the contingent beneficiary by the two adult children?
They can contest all they want (and I certainly would), but chances of them winning are pretty slim...



Any chance ex-wife will feel any moral obligation to his children? Does she even know she is still the primary beneficary? What state are you in? (and again) Is this a group (thru his employer) policy or a private one?


_________________

"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr.
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Wed Jul 22, 2009 5:06 am   Post subject:   

Actually the contingent beneficiary too has no right over the policy benefits since the primary beneficiary is still alive. Therefore, contesting her would be futile.



However, you can take your chance in challenging the ex-wife but as the other posters have mentioned that too might not yield a result.

jeorge
Senior member
Leave a quick message

jeorge

Joined: 07 Oct 2005
Posts: 798


132.85 Dollars($)

PostPosted: Fri Feb 05, 2010 7:01 pm   Post subject: wording for a minor beneficiary  

when you want to have a minor as a beneficiary, what wording do you use to have the insurance or 401k proceeds go to a trust or to name a trustee?


_________________
Register Now to have your Insurance queries solved.
acurry
Guest







PostPosted: Fri Feb 05, 2010 8:46 pm   Post subject:   

Two different issues here.



401(k) proceeds are controlled under federal law. A person's current spouse is the de facto beneficiary unless he/she signs away that right. A divorced spouse might be entitled via a "court order," but even so, the court order is not really superior to federal law. The new spouse would still have to sign-off on the benefit.



Life insurance is an entirely different matter. Although a few states' beneficiary laws are reminiscent of the 19th century, in most states, a person is free to name anyone or anything as their beneficiary. This includes minor children. However, minors generally do not have the "legal capacity" to manage their own money, and insurance companies will rarely pay any money directly to a minor.



A competent attorney -- one who specializes in wills and trusts -- can help with such a situation as you are describing. If a life insurance trust was created for the benefit of the child(ren), the beneficiary statement would be something like: Primary beneficiary "The John & Mary Smith Irrevocable Life Insurance Trust, dated, February 5, 2010".



Simple. It's the language of the trust document that is all important. That document will define the beneficiary(ies) of the trust, their share of trust assets, who the trustee is, and perhaps detaill when and how the assets of the trust may be paid to or used by/on behalf of the trust beneficiary(ies). This is NOT something that can easily or normally be described in a life insurance policy's beneficiary statement.



You would definitely NOT want to name a (natural/living-breathing) person other than the minor child as the "trustee" because doing so would make the policy proceeds the property of that person, and not that of the child. The child would essentially be powerless to claim against the proceeds. "William Smith (an adult) for the benefit of Tommy Smith (a minor child)" could be used, but is not the best recommendation. What happens if William predeceases the insured or the minor child, and no new beneficiary is named before the insured dies? Turmoil.



Beneficiary statements are among the most important aspects of a life insurance policy, and need to be done correctly, and precisely, to avoid any conflict after it's too late to make any corrections (after the insured's death). This is also one of the least well understood areas of life insurance by agents.



A truly competent attorney, certified in wills, trusts, and/or estate planning, is you're best bet.



_________________

CA-licensed Life & Disability Analyst. CA Insurance Lic #0596197. Also investigating insurance company abuses, and providing litigation support/expert witness services. Send me your questions, and I'll send you my answers.
MaxHerr
Forum Expert
Leave a quick message

MaxHerr
Forum Expert

Joined: 29 Nov 2009
Posts: 7454
Highets Points
Location: Pomona CA
71.84 Dollars($)

PostPosted: Sun Aug 01, 2010 12:38 am   Post subject: Please help  

My 35 year old brother passed away unexpectedly and left his nine year old son behind. At the time of death he had full custody of his son because the biological mother has a serious drug problem. Upon death, custody reverts back to the biological mother.



He was married for less than a year to his new wife who was listed as the primary beneficiary on his life insurance. I am listed as the "second benefactor" on the policy and before he was married I was listed as primary for about 5 years. My brother and I at that time had a verbal agreement that all of the proceeds would be used for my nephew and disbursed throughout his life as needed, (college, car , wedding ETC.) I have recently learned that the new wife has no plans of leaving my nephew any of the life insurance proceeds and also has no interest in maintaining a relationship with my nephew. In fact my nephew went over to the house "his father's house after the funeral and she asked him if she should box up his things for him and she would not let him take any sentimental belongings of his fathers.



My question is how do I contest this life insurance payout and what are my chances of winning?

_________________


_________________
Register Now to have your Insurance queries solved.
sad sister
Guest







PostPosted: Sun Aug 01, 2010 1:37 am   Post subject:   

Quote:
My question is how do I contest this life insurance payout and what are my chances of winning?




You don't contest the beneficiary, because your chances of winning are about 0.05%. You would have to be able to prove something on the order of coercion or duress to get him to do what he did. The courts are not going to entertain other "thoughts" the owner may have had, because that is only speculation. The beneficiary designation is in writing.



It's unfortunate that your brother chose to take care of his "new wife" and not his son, but apparently that was what he intended when he made her the primary beneficiary, and you the contingent beneficiary. Why he did not list his son in either of those positions only he knows for sure.



If your nephew could prove that his father received bad advice about beneficiaries from the life agent, he might have a claim against the agent, but not the insurance company or the "new wife"/stepmom.


_________________

CA-licensed Life & Disability Analyst. CA Insurance Lic #0596197. Also investigating insurance company abuses, and providing litigation support/expert witness services. Send me your questions, and I'll send you my answers.
MaxHerr
Forum Expert
Leave a quick message

MaxHerr
Forum Expert

Joined: 29 Nov 2009
Posts: 7454
Highets Points
Location: Pomona CA
71.84 Dollars($)

Quick Reply
Your Name
Subject
Message body
All times are GMT
1, 2  Next  
Page 1 of 2


Get a Quote
Ask Community Experts

flash plugin

Quick Links

Must See

Community

Hot topics in forums

Latest in blogs

AmPmInsure on Facebook



Page loaded in 6.862 seconds.