by myrna_tb » Sat Oct 20, 2012 08:51 am
help!!! Our stepmom is trying to get half of my dad's life ins. benefit but she is only named 25% beneficiary on the contract? she is seeking a lawyer and fight for reason of community property. Does she have a case? can she get 50% of the life insurance proceeds?
Posted: Sat Oct 20, 2012 05:51 pm Post Subject:
You don't mention whether this is an employer's group life policy or an individual life insurance policy. There may be different rules governing a group life policy. If it's individual insurance, your stepmom has no chance of winning. A person is free to name anyone or anything as their insurance beneficiary, and in any amount or percentage.
On the other hand, some attorneys will do anything for money, even when they know they cannot win.
Posted: Sun Oct 21, 2012 01:54 am Post Subject:
Its an individual life insurance and we are in california and they saif she have a big chance because of the community property rule. Are they right?
Posted: Sun Oct 21, 2012 04:40 am Post Subject:
NO
Posted: Tue Dec 04, 2012 11:32 pm Post Subject: Group
Why would the beneficiary rules change if it was a Group policy (through an employer)?
Posted: Wed Dec 05, 2012 02:16 am Post Subject:
Why would the beneficiary rules change if it was a Group policy (through an employer)?
It could change if the employer is covered under ERISA. In such a case the employer's Benefit Plan Document would control the issue of beneficiaries, not state law. Some states have probate laws that automatically revoke a spouse as beneficiary of a person's life insurance at the moment a divorce becomes final. ERISA does not, but ERISA also supersedes state law. If the plan document says the spouse will be revoked, so be it. If the document says the spouse will stay on unless changed by the employee with the spouse's consent, then the departed spouse is still the beneficiary until changed by the employee..
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