Who would get the life insurance benefits?

by ddempsey » Tue Jan 26, 2010 10:01 pm

My father passed away and had listed his children as the beneficiary of his Life insurance policy. The policy was from 1986 and he was not married at the time took out the policy. He was married at the time of his passing. Who would the benefits go to in this case in the state of AZ? His wife as AZ being a community property state or the children listed as the beneficiaries?

Total Comments: 16

Posted: Tue Jan 26, 2010 11:46 pm Post Subject:

Who would the benefits go to in this case in the state of AZ?

Whomever is listed as the beneficary on the life policy

His wife as AZ being a community property state or the children listed as the beneficiaries?

not the wife, unless she's the beneficary, (maybe dad changed it after marriage?)...

Posted: Wed Jan 27, 2010 01:59 am Post Subject:

As stated the benefit will go to the named beneficiaries in the policy. Unless your dad changed this to his wife, you and your siblings should receive the benefit. Community property only means that he has certain obligations to name his wife joint owner or primary beneficiary when establishing certain investment accounts.

Posted: Wed Jan 27, 2010 05:45 am Post Subject:

It depends if the policy has the benni's listed by name or the phrase all surviving children of __________.

Posted: Wed Jan 27, 2010 11:15 am Post Subject:

This was left in my 'in box' by the OP

if the children are listed as the beneficiaries (which they are), why would cigna be accepting a claim for the policy by the wife. then passing everything on to their legal department to decide how it will be paid out? we appreciate your comments.

Posted: Wed Jan 27, 2010 11:17 am Post Subject:

Sounds to me like the wife has challenged the pay out. I would be contact this legal dept. myself and ask them to show me in the policy WHERE it says they will pay a surving spouse and disregarding the named beneficarys..and do this immediately. I would further advise them if they intend to pay this to the spouse, to expect a lawsuit..

Posted: Fri Jan 29, 2010 06:12 pm Post Subject:

If the children are listed as beneficiaries, whether they actually get paid the money directly to them depends on their ages. In almost every state, you have to be at least 18 to directly receive life insurance proceeds.

If the child(ren) haven't yet reached age 18, there's the possibility that the court has in place some sort of custodial, conservatorship or trust arrangement set up and the mom is involved. This is pretty common.

Again- heed the advice from fellow posters and check stuff out!

InsTeacher 8)

Posted: Sat Jan 30, 2010 12:46 pm Post Subject:

Hi Teacher

If the child(ren) haven't yet reached age 18, there's the possibility that the court has in place some sort of custodial, conservatorship or trust arrangement set up and the mom is involved.



Does this means even if the mom has custody of the benefits now, the money would ultimately go to the children when they come of age?

The OP should find out as soon as possible why they are designing payment options for the mother.

Posted: Sat Jan 30, 2010 12:51 pm Post Subject:

I don't think we have ANY minors in this question. The policy was written in 1986..

Posted: Sat Jan 30, 2010 10:47 pm Post Subject:

The process by state law usually involves something of this nature:

Insured dies and leaves benefit to children as named beneficiaries.

Proceeds are held in a trust established by court.

Named guardian of the children has the ability to request funds and accesses them through a court order--can be a PITA.

In any event, you'll need an attorney who understands the community property laws of Arizona. The fact is life insurance proceeds can be due to the wife in certain scenarios and generally a consent to not be the named beneficiary is required (some states will assume consent if the beneficiary is a close relative)

Yes the policy was established before the marriage, but like a lot of items you own before marriage what's mine is yours and what's yours is mine.

Posted: Mon Feb 01, 2010 11:32 pm Post Subject:

The named children are all adults from the first marriage and are listed by name as the beneficiaries. The third wife who was married to the dad after the policy had been written, but at the time of death, is filing claim to the policy.

The adult children / listed beneficiaries are wondering what rights they have versus the rights of the 3rd wife who was married to the father for approximately 15 years.

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