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Contest Life Insurance Beneficiary

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desertrose0317

Junior Member
What is the name of your state (only U.S. law)? ILLINOIS.

My second eldest brother Mel (who had diabetes) called me a couple of months before he died. He was upset because his wife had left him. She told him that she left him because he did not agree to get a bigger apartment so that she could babysit her grand children in the privacy of their own apartment. He tried to tell his wife that he did not want her babysitting because he didn’t want to be responsible if anything happens to the children. He said that she only came home for one day but spends 6 days and nights at her son’s house. My brother also mentioned that he had taken a $10,000 loan out of his 401K to buy a condo but changed his mind due to the economy (he was afraid of committing to buying a place should he get laid off from work).

Needless to say, he put the $10,000 in his bank account figuring that he would put it back to his 401K later but soon he discovered that the money is missing from his account. He told me that his wife (who is older than him with 6 kids from prior marriage) had opened her own bank account and has her social security benefit going to her account (direct deposit). He was thinking that maybe that’s where the $10,000 went too. So, I advised him to speak to her about it. He also said she had opened credit cards and had been charging, etc and added that his bank account has no money. He was thinking that she’s been using his money to buy things and saving her social security money in her own account. I asked him “how would she get your money without your knowing?” He said, “because she has my ATM card.” He further said that the reason why she has his ATM card is because she’s the one who pays all their bills with his money.” So I told him to get his ATM card back and start managing his own bills or at least talk to her about their marriage and money problems.

But you see…my brother can’t read or write as he had only attended second grade. He only knew how to sign his name. He used to come to me whenever he had to sign legal papers just to be sure he’s signing legitimate papers like his life insurance, health insurance, etc. So, I can understand why he allowed my sister in law to handle all the finances.

He told me that he was coming to Vegas on vacation and would like to get together. He said his wife would probably come if he mentions that he’s going to Vegas for vacation. I didn’t hear from him again about it.

End of November (2008) he came to see me together with his wife and they seem to be getting along so I didn’t question it. I figured they’ve ironed out their problems. He didn’t stay long nor contacted me until Friday, January 2, 2009 to let me know that he gave in to his wife’s wishes to get an apartment. I told him just as long as he’s happy I’m happy for him. He said that it isn’t what he wanted but he did it because she’d leave him if he didn’t do what she wants. I told him if it’s not what you want then you shouldn’t do it but if you love her and can’t stand the thought of life without her then you must make some sacrifices.

My brother Mel died of a massive heart attack in his car while attempting to drive home from work two days later (January 4, 2009). His wife was in Las Vegas when he died. She called me to tell me the news. After the funeral, my oldest brother Manny showed me a Beneficiary Change Form that my brother Mel had signed & dated showing that his life insurance is to be split between my oldest brother Manny (to split with his brothers and sister) and his wife. He said that he and my brother Mel drove to the post office to mail it together. He also said that our brother Mel wanted to be sure his brothers and sister were taken care of in the event of his death and that his wife will still get his 401K, half of the life insurance, and his social security survivor’s benefit. He was insured for $250,000.

My oldest brother Manny phoned the insurance company to inquire about how to file claims and he was told he had no right to file a claim because he was not named as the beneficiary. Manny told them that he has a signed copy that he and my brother Mel mailed together at the post office. The rep told him that since my brother Mel was insured for $250,000 but since he died close to his place of employment it has doubled so now the beneficiary will receive $500,000. My brother Manny offered to send the rep a copy of the insurance Change Beneficiary Form but the rep said it was not necessary since they never received it and that my sister in law will receive the entire amount.

My brother Manny wrote my sister in law pleading with her to do the right thing but she refuses to even talk to him so my brother asked me to call her since she refuses to take his calls. She said that she will not give him (she said he's so greedy) or anyone of us nothing. She also said that she will bury my brother's ashes (she did not pick up his ashes until 2 weeks after his funeral) and not tell us where she buried him. My brother died without a will so we're not even sure if he wanted to be cremated and she said that is what he wanted. She also said he wanted to be buried on her side of the family's lot in the Philippines. I told her she can't bury him there because we cannot afford to fly to visit his grave and that all his relatives are here (this was before she picked up his ashes). She never even consulted us about his wish to be cremated or burial wishes.

She was upset at my brother Manny because my brother's wife questioned why she's never around whenever my brother Mel has an emergency. The first time he went into a coma with his diabetes, she was in Cancun. She luckily came home and found him scrambling around at home (he didn't even know who he was). Had she not come home when she did, he would have died.

This time, she was in Las Vegas when he died. So Manny's wife was upset with her because she felt that knowing my brother's condition she should have been around him more and not traveling or leaving him home alone. My brother also said that she phoned him telling him that he needs to have a talk with Mel because he started drinking again and when my brother asked her how long he has gone back to drinking she told him for one year now. My brother asked her, “and you’re just now telling me this?” He further told her that she should be the one to nag him because she is his wife and she could make him do things. My brother Manny and his wife feel that she is responsible for his death because she's too busy either traveling or babysitting instead of taking care of her husband. My brother worked for a major airline and that's why his wife was always traveling.

Can anything be done to contest the insurance beneficiary? We don’t want her to benefit out of my brother’s death.

Thank you in advance for any advice.
 


Dandy Don

Senior Member
Was this policy purchased through his employer or was it purchased through an insurance agent or on his own?

Was the beneficiary designation form signature witnessed by a notary public?

Was it mailed by using certified mail or just sent in regular postal mail?

DANDY DON IN OKLAHOMA ([email protected])
 

Dandy Don

Senior Member
Just because the insurance company says they never received the form doesn't mean that is what actually happened. They could have chosen to ignore it. Find a civil law attorney or business law attorney who has experience with interpleader actions with insurance companies to see if he is willing to represent you in this matter. If I were you I would be making a big stink with the insurance company so that they will get apprehensive about how they handle this case so they will put it into an interpleader action and then let the courts decide who gets the money. Your argument is going to be that they lost or misplaced the form and that they failed to confirm/notify your father about the desired change, and who knows what an internal review of their e-mails or memos on the handling of that account will reveal?

DANDY DON IN OKLAHOMA ([email protected])
 

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