by Guest » Thu Jun 18, 2009 07:42 pm
my step dad is the beneficiary on my mom's life insurance policy. She recently passed away, but before she did she had a will drawn up leaving my brother and I a portion of her life insurance. Does he have to honor it?
Posted: Fri Jun 19, 2009 02:18 am Post Subject:
A will cannot change the terms of the beneficiary designation, so it will not affect the death benefit. If he is the primary beneficiary on the policy, instructions in a will will not change that, and he will get the proceeds.
If he chooses to give you and your brother the proceeds from the death benefit, that's his choice. Seeing as that your mother desires stated that you and your brother receive the funds, it would be the "right" thing to do for your stepfather to give you the funds after he receives them. That in and of itself creates additional potential tax liabilities under gift taxation rules and other IRS stuff. But the will won't change the beneficiary designation and payment of the proceeds.
Sorry about this...
InsTeacher 8)
Posted: Fri Jun 19, 2009 04:19 am Post Subject:
Hi OP
Yeah, I agree with Ins Teacher. Your step dad is the one who'll get all the proceeds from the policy. I'm afraid nothing the will says will help you get any benefits from your mom's policy.
OP are you sure your step dad is the primary beneficiary in your mom's policy?
Teacher, if the OP happens to be a secondary beneficiary, does he stand any chance if he contests the policy?
Posted: Fri Jun 19, 2009 05:05 am Post Subject:
Teacher, if the OP happens to be a secondary beneficiary, does he stand any chance if he contests the policy?
If they are the contingent beneficiary, they can contest the primary designation all they want. It won't make any difference unless the contingent can prove some type of fraud or duress, which is highly unlikely.
I would never presume to understand the complete situation of the OP, but from the sounds of the OPs post, it doesn't sound like we're off the mark here. I always suggest that if there's a real concern that an attorney should get involved, but if this is all there is to it, it likely wouldn't do any good.
InsTeacher 8)
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