What is the name of your state? VA
My father died unexpectedly last week and I have discovered his life insurance policy lists his second ex-wife as the sole beneficiary. They were divorced over 12 years ago. I spoke with her and she indicated she is willing to "sign over" any benefits to my sister and me since I signed as the guarantor for the funeral costs.
My concern is that if the insurance company issues a check to her and she then gives the money to my sister and me, we could incur large tax penalties.
Is there any way to contest the fact that she's named as the beneficiary to avoid this problem?What is the name of your state?