Life insurance

[bv143]

Hello all so I am a beneficiary and a policy owner to my aunts life insurance policy. I was raised by my aunt while her natural daughter was never around to care for her. When I purchased the policy my aunt wanted her natural daughter to be a co owner to the policy and during that time we did not know where she was and could not contact her so I went ahead and added her name and signature to the policy so now we are in a constant battle with her over fraud because I added her as a co owner. Not sure what to do now and could sure use some advice. I know it was a stupid idea but I wanted to make my aunt happy at the time. She loves her daughter but they are like oil and water. Could I go to jail for this???

 

[HRZ]

NO jail in sight .....as a practical matter the policy pays as per designated benificiary...IF you are the only designated beneficiary and simply shut up and leave status quo as status you...you are the benificiary at end ? I'd not comment or stir the pot.....

 

[LdiJ]

Hello all so I am a beneficiary and a policy owner to my aunts life insurance policy. I was raised by my aunt while her natural daughter was never around to care for her. When I purchased the policy my aunt wanted her natural daughter to be a co owner to the policy and during that time we did not know where she was and could not contact her so I went ahead and added her name and signature to the policy so now we are in a constant battle with her over fraud because I added her as a co owner. Not sure what to do now and could sure use some advice. I know it was a stupid idea but I wanted to make my aunt happy at the time. She loves her daughter but they are like oil and water. Could I go to jail for this???

Its an odd situation. By both of you being co-owners you cannot up and cash in the policy without her permission. However, you made yourself the beneficiary which normally you also could not do without her permission. I do not see how that could end up being fraud, but you might have to add her as a beneficiary too in order to resolve the issue.

 

[justalayman]

I can’t get beyond the statement;

we did not know where she was and could not contact her so I went ahead and added her name and signature to the policy

How do you add a person’s signature when you don’t even know where that person is?

Maybe that’s where the fraud comes in to play.

 

[Zigner]

I do not see how that could end up being fraud ...

Perhaps this part?

... I went ahead and added her name and signature to the policy ...

I agree that if the OP and her Aunt went ahead and changed the beneficiaries to be 50/50, it might smooth things over.

 

[LdiJ]

Perhaps this part?



I agree that if the OP and her Aunt went ahead and changed the beneficiaries to be 50/50, it might smooth things over.

I realize that Zig, but the OP did not benefit nor the daughter lose anything by the action. That is what is so odd about the whole thing. The OP did not gain anything by adding the daughter as an owner.

 

[bv143]

Its an odd situation. By both of you being co-owners you cannot up and cash in the policy without her permission. However, you made yourself the beneficiary which normally you also could not do without her permission. I do not see how that could end up being fraud, but you might have to add her as a beneficiary too in order to resolve the issue.

I am the owner and the beneficiary of my aunts policy and my cousin is the co owner.

 

[bv143]

I can’t get beyond the statement;



How do you add a person’s signature when you don’t even know where that person is?

Maybe that’s where the fraud comes in to play.

Correct. So now Im not sure what I need to do to protect myself from this stupid mistake.

 

[LdiJ]

I am the owner and the beneficiary of my aunts policy and my cousin is the co owner.

We did understand that.

 

[justalayman]

I realize that Zig, but the OP did not benefit nor the daughter lose anything by the action. That is what is so odd about the whole thing. The OP did not gain anything by adding the daughter as an owner.

I have a funnny suspicion this deals with insurable interest, or lack of actually, when purchasing this policy. I suspect the daughter was added as it was determined she had an insurable interest and the op had none which would mean the op could not purchase a life insurance policy on the aunt.

I’m thinking Sir Walter Scott summer it up well;

“Oh what a tangled web we weave when first we practice to dec

 

[LdiJ]

Correct. So now Im not sure what I need to do to protect myself from this stupid mistake.

Well, we suggested that add the daughter as a 50% beneficiary might smooth things over.

 

[justalayman]

I realize that Zig, but the OP did not benefit nor the daughter lose anything by the action. That is what is so odd about the whole thing. The OP did not gain anything by adding the daughter as an owner.

Well, this would be fraud and forgery. Nobody needs to have benefitted yet for the crime to have taken place.

 

[Zigner]

I realize that Zig, but the OP did not benefit nor the daughter lose anything by the action. That is what is so odd about the whole thing. The OP did not gain anything by adding the daughter as an owner.

The other party could be/have been harmed if she were collecting public benefits and failed to report her (co-)ownership of the policy.

 

[Zigner]

What US state did this take place in?

 

[justalayman]

Correct. So now Im not sure what I need to do to protect myself from this stupid mistake.

What does your cousin want out of this? I suspect you need to seriously consider any demand she makes since you have committed actual crimes in purchasing the policy.