by lizgolden40 » Mon Jan 18, 2010 09:04 pm
I am the designated beneficiary on a life insurance policy of my ex-husband. He was not remarried. I am the mother of his two young children. He took out the policy after we separated. The insurance company refuses to pay me. They will pay his estate. Now I have to set up an estate and it will take months and money I don't have. This doesn't seem right. I live in Pa. Please comment.
Posted: Mon Jan 18, 2010 10:36 pm Post Subject:
You cannot be the beneficiary if the insurance company is refusing to pay you. There has to be a missing piece of information here in order for this course of action to be taking place. Unless there is something strange about PA state law that I'm unaware of.
If he took the policy out after divorce and named you the beneficiary that would most like be a course of action taken by a divorce decree's requiring life insurance on the life of your ex spouse in the event he died and was not longer able to provide child support.
There are a multitude of issues with the money now being sent to the estate beyond just having to wait for the probate process. It could increase legal fees from the attorney who probates the estate, and interest earned while waiting for the money to be brought out of the estate could be taxable at the estate's taxable income rates, which are likely a lot higher than your taxable income rates.
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