Life insurance beneficiary

[Paul S.]

What is the name of your state? NY

This is a story that we have all heard in the past but I was hoping for a different outcome.

My son-in-law recently died and he had a life insurance policy provided by his employer. He made his wishes know to his wife, myself and others that he wanted the proceeds to go to his wife.

He called his benefits office several times and told them that he wanted to make sure that the life insurance went to his wife. They looked him up on the computer and said everything was fine, that he had the life insurance, but they never checked his file until after he died and you guess it, his brother was the beneficiary. He had this from before he was married. It was never changed it even though he tried.

I know it looks hopeless, but I think this case is a little different because he had made his intentions know to everyone and he made an attempt and thought he had did the right thing, but his employer never said come down to the office and make sure everything was right.

Right now my daughter and her brother-in-law are trying to work things out but it does not look good. It seems that he is really trying to take advantage of her and playing with her emotions.

 

[I AM ALWAYS LIABLE]

My response:

The decedent's wife doesn't have a prayer, legally.

Verbal statements as to whom the beneficiary should be are of no value. The fact remains, the beneficiary was never changed in writing, and that was the decedent's responsibility.

IAAL

 

[Paul S.]

Can the decedent's wife sue his employer and the present beneficiary, because the decedent made an attempt to change the beneficiary and his employer failed to do so. He was not working during this period.

Also will a law suit slow down the process of the present beneficiary receiving the funds.

 

[I AM ALWAYS LIABLE]

Can the decedent's wife sue his employer and the present beneficiary, because the decedent made an attempt to change the beneficiary and his employer failed to do so. He was not working during this period.

MY RESPONSE: Sue the employer for what? It's not the employer's job to change their employee's beneficiary. That was the decedent's job. There is NO nexus or duty between an employee and an employer in this type of situation. The decedent/employee could have contacted the insurance company directly, but failed to do so.

Sue the beneficiary for what? For being named? Because the decedent failed to change beneficiaries of the policy? How does that make an innocent beneficiary liable?


Also will a law suit slow down the process of the present beneficiary receiving the funds.

MY RESPONSE: Look, you've got no proof of his intentions to change the beneficiary - - and, even if you did, the spoken word has no value. A change of beneficiary MUST be in writing.

If this had happened in California, I'd have a little bit different advice for you; however, New York is a "separate property" State, and the equities would be different if it were a "community property" State like California.

In essence, and because New York is a separate property State, the decedent could spend the money he earned in any fashion he wanted. Whereas in California, that wouldn't be the case because half of the money being spent on premiums would be the wife's, and the equities of such a situation in California would cause the proceeds to be shared, on Community Property principles of law.

Sorry, but the decedent's wife, I believe, is simply out of luck.

IAAL

 

[Paul S.]

Thanks for the quick reply

The decedent's life insurance policy was a benefit from his employer. He never paid into it. The contact to change the beneficiary was his employer.

Directly after the decedent passed the present beneficiary told the decedent's wife that he would sign over the proceeds of the insurance to the wife. He told several people this. Now with some time gone by the beneficiary has asked for some financial records from the wife. The beneficiary has these records now and we are waiting to see what he does.

Don't you think by asking for there records and by his passed conversation he has created a slippery slope for himself.

 

[I AM ALWAYS LIABLE]

"Don't you think by asking for there records and by his passed conversation he has created a slippery slope for himself."


========================================


My response:

No, not at all. Unless he gives decedent's wife some money out of the goodness of his heart, asking for the records is fairly meaningless.

However, it sounds as if he may give her something, but there's no law that will "compel" him to give her any money if he decides not to.

Oh, and one last item. If he does decide to give her any money, and since the money IS NOT coming from an insurance company directly to her, then the money given by the decedent's brother will be taxable to decedent's wife.

IAAL

 

[Paul S.]

Life Insurance Help

NY- I need any suggestions here. Decedent definitely wanted money to go to his wife but did not change the Beneficiary because he thought it was taken care of. I personally had 6 - 10 conversations about his intentions with him and the employer. He also told several other people.The wife gave up here career and 2 years of her life for him, now has $30,000 in medical bills. We know this is a weak case, do you have any suggestion besides giving up. What about arbitration etc. We really need some help here, can not get over it.

 

[CIAA]

Paul S.,
We are not lawyers and don't give legal advice. Based on decades of insurance administration I would have yo say that IAAA is correct. You may check to see if "beneficiary change" is in the policy, although it will likely say the same thing as above. Typically a change of beneficiary is not valid unless in writing and not until received by the insurance company. There are many reasons for this and it appears that you will just have to hope that that your daughter's late husband made his wishes known to his brother.