by Guest » Sat Dec 06, 2008 03:25 pm
My boyfriend's father died in August. His divorce was finalized from his ex-wife in April. Apparently, he never changed her as the beneficiary on his life insurance policy. My boyfriend and the siblings really didn't care, because they didn't have the money to begin with-so what would it matter if they didn't have it now.....however the ex-wife agreed to split the insurance money 5 ways--believing it was only fair and she had a decent relationship with all the kids/grandkids. My boyfriend and his siblings had a letter drafted by their lawyer stating that the ex-wife agrees to split the life insurance money and she signed it. It was sort of her suggestion. After all, their dad divorced her (and on a side note, his reasons for divorcing her had something to do with him pulling his retirement out early upon her suggestion so that she could place some money in an acct that would draw interest and some in the bank acct to pay bills with, only to find out that the money disappeared and she began using his credit card to pay for bills, subsequently causing my boyfriends dad to file for bankruptcy). My boyfriend got a letter in the mail yesterday from his step-mom stating she's going to be keeping all the insurance money basically because she feels entitled to it. She rattled off a list of things she has done that are only simply things a nice person would do without payment. (claims she paid his cell phone bill for a year, a gas bill in 2/08, their joint tax return in 2007, and has been feeding the cats since his death and mailing his mail to my boyfriend's sister. It's so ridiculous....however, my question is this.
Can she get away with this if she signed a notarized document stating she agreed to split the insurance money? After all, they were divorced and it was more than likely an oversight on his part. Also, would something like this be suitable for civil court and how long should it take???
Thanks all.
Can she get away with this if she signed a notarized document stating she agreed to split the insurance money? After all, they were divorced and it was more than likely an oversight on his part. Also, would something like this be suitable for civil court and how long should it take???
Thanks all.
Posted: Sat Feb 12, 2011 12:45 pm Post Subject:
I said that there is zero reason to set up an ILIT because the concern presented has nothing to do with ownership of the policy or estate taxes. She is concerned about the wrong person getting the money. This is not the purpose of an ILIT. It's nice, though, how you are covering your tracks.
If there is a reason to discuss setting up an ILIT in this situation based upon the facts presented, you should be bringing up the subject with every single life insurance question here.
If estate taxes were the issue here, the concern wouldn't solely be the life insurance and the 401(k).
Just be honest when you are wrong. Unless the concern is estate taxes, a trust is needed as beneficiary, but there is no reason for an ILIT.
Posted: Sat Feb 12, 2011 07:48 pm Post Subject:
a trust is needed as beneficiary
On this there is no disagreement. What type of trust is up to the attorney to decide. ILIT or not. There is no covering one's tracks here.
However, in a parallel post in the AUTO INSURANCE forum, the OP does mention that she has no property, only the life insurance and 401(k) -- information not posted here -- so yes, the ILIT is probably not necessary in her case. But I'll let the attorney settle the matter for her. As should you.
Posted: Tue Feb 15, 2011 02:49 pm Post Subject:
Max, you are the one who explicitly said an ilit. There was no information given for one to even start thinking in that direction. Ilits are used to solve some issues invoving ownership. She was looking to solve abeneficiary issue.
Posted: Thu Feb 17, 2011 04:13 pm Post Subject:
the beneficiary on a life insurance policy can be changed at any time unless it is an irrevocable beneficiary. If the person dies and the beneficiary has never changed between old to new wives then im sure your pretty much stuck with that. sorry.
Posted: Thu Feb 17, 2011 08:45 pm Post Subject:
Orlando . . .
There are a number of states that now require, through their insurance codes, that following a divorce, automatically forces the ex-spouse off the policy. My reading of those codes would enforce this against any designated beneficiary, including an irrevocable beneficiary.
It would not be improper or unlawful for the policyowner, following a divorce, to rename the spouse as the beneficiary or irrevocable beneficiary.
Posted: Wed May 11, 2011 04:22 pm Post Subject: Mystery Beneficiary
My brother passed and had a substanial estate. His insurance policy at his job is a mystery. He had no wife nor kids and so we his family are in the process of ggoing thru probate court to settle his estate. His insurance policy through his job has given us the run around, will not release name of beneficiary and was so late in getting back with funeral home we had to have him cremated. They finally got back with the funeral home and they called to me to verify some info but when I asked who the beneficiary is they will not tell me who it is. Do I have the right as his sister to know that information.
Posted: Thu May 12, 2011 04:39 am Post Subject:
Do I have the right as his sister to know that information.
If the insurance through your brother's employment was a group policy, his employer has the information about any beneficiary listed on his enrollment card. The insurer relies on the employer to obtain, maintain, and provide that information following the death of a covered employee, so it's quite possible they don't know who it is (if anyone).
Contact your brother's employer's HR department (most likely the responsible party at the employer) and talk to them about the situation. As a next-of-kin, they should not object to giving you the information.
If they do, then you need to contact your state's Dept of Insurance for assistance. This is not a complex issue, and no one should be dragging their feet as you indicate.
Posted: Tue Jun 21, 2011 03:58 pm Post Subject:
Changing a beni doesn't take long at all you just fill out the paperwork and its processed but consider it changed anyhow when the paperwork is turned in..
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