beneficiary of life insurance questions

[law72062]

What is the name of your state? TN

I have an aunt that recently passed away. 12 years ago her life insurance policy was changed to make me (her neice) the beneficiary. She divorced 12 years ago and had two children. She ask me if I would bury her and take care of everything and whatever amount was left if any was mine to do with what I pleased. Now she has passed away and her husband thinks he deserves the money because he was married to her for 18 years. He is considering a lawsuit to get the insurance. So far I have paid for everything out of my own pocket because I haven't received the insurance check yet. My question is can he sue and get the insurance money? What about the bills I have incurred thus far if he can?

 

[Betty]

What is the name of your state? TN

I have an aunt that recently passed away. 12 years ago her life insurance policy was changed to make me (her neice) the beneficiary. She divorced 12 years ago and had two children. She ask me if I would bury her and take care of everything and whatever amount was left if any was mine to do with what I pleased. Now she has passed away and her husband thinks he deserves the money because he was married to her for 18 years. He is considering a lawsuit to get the insurance. So far I have paid for everything out of my own pocket because I haven't received the insurance check yet. My question is can he sue and get the insurance money? What about the bills I have incurred thus far if he can?

Life ins. passes outside the estate & goes to the beneficiary named in the policy - you. If she wanted her husband (seems ex-husband) to be bene she would have/should have changed the bene to him. It seems from your post he might have been bene but when they divorced, she changed bene to you. He can sue you for the money because anyone can sue anyone for anything. However, that does not mean that he will win. He can contest the ins. co. paying out the money to you if it hasn't been paid yet (I can't tell from your post - just that you haven't received the check yet) but that doesn't mean they will give the proceeds to him. I know at the co. I worked at you would get the money since you were named bene. Does your aunt have an estate that was probated - any bills should be paid out of the estate assets - you are not responsible for your aunts bills. Actually, you can use the ins. proceeds for whatever you wish. If she doesn't have an estate to be probated, I can see you paying to bury her & whatever else you promised her you would do with the proceeds since it would be the morally right thing to do but technically you can do with the money what you want.

You will just have to wait & see if you get the check from the ins. co. (you should) & if you do, if he sues you - though he shouldn't win. I see no way the money should go to him - they were even divorced. Just knowing what I know from working at an ins. co. for many years, you should end up with the money whether you get sued or not. Hopefully, he will give up the idea of suing - maybe he will realize he won't win since you were the named bene - it doesn't matter how many yrs. they were married.

 

[law72062]

I haven't received the check yet. Each time I contact the ins. co they tell me the "home" office needs some other information from me. Which I go into the office to give them. It has been 5 weeks since I turned the death certificate over to them. At that time I was told it would take 2 weeks. If I am being sued for the money would the ins. company have to notify me?

 

[Dandy Don]

Was she married to this husband at the time she purchased the policy or are you saying her husband now was a new husband after she had previously divorced someone else?

This is called an interpleader action--if the insurance company can not determine who legally is eligible to receive these benefits, they will turn it over to the probate court to let the court decide. You are in a strong position to win and the insurance company or their attorneys theoretically will notify you if the matter goes to court.

 

[Betty]

You will just have to wait until you hear from the ins. co. When there are multiple claims, it takes longer to determine the bene & to pay out the proceeds. It's possible it might go to court.

 

[law72062]

Dan - No she was not remarried. Had been married once and been divorced for 11 - 12 years. No will, no probate or anything Only a life ins. policy which I am only benneficary.

 

[Betty]

As indicated previously, per info in your posts you should get the proceeds. You will have to wait until ins. co. gets back to you.