Beneficiaries

[libbyg16]

What is the name of your state?Indiana

My mother-in-law passed away. Her husband thought he was the sole beneficiary of her life insurnace policy. However, he was only given half of the money and the other half has been left to her 2 younger children. (I am assuming to be given to them at a later date) He is in an uproar about it and is going to meet with his attorney to get the rest of the money. Is that possible? I thought that whomever the money is designated to is who gets it. Period. I was also under the assumption that the money he was entitled to was all he was able to know about. I thought the rest of the money would be none of his business.
Also, I thought, until recently, that you had to list your spouse as the primary beneficiary. And only your spouse.

 

[Litigation!]

What is the name of your state?Indiana

My mother-in-law passed away. Her husband thought he was the sole beneficiary of her life insurnace policy. However, he was only given half of the money and the other half has been left to her 2 younger children. (I am assuming to be given to them at a later date) He is in an uproar about it and is going to meet with his attorney to get the rest of the money. Is that possible? I thought that whomever the money is designated to is who gets it. Period. I was also under the assumption that the money he was entitled to was all he was able to know about. I thought the rest of the money would be none of his business.
Also, I thought, until recently, that you had to list your spouse as the primary beneficiary. And only your spouse.

My response:

He's in for an expensive lesson.

IAAL

 

[libbyg16]

Does that mean I am right and that he is not entitled to that money?

 

[cbg]

Yes, that's what it means.

On a 401k plan, the law requires that a married participant be the spouse unless the spouse has provided written consent for it to be otherwise.

On a life insurance policy, barring a state law that says otherwise, the insured/owner may list anyone they like as their beneficiary.

 

[Betty]

The beneficiaries named by your mother-in-law are entitled to the proceeds as she requested - husband gets 1/2 & children get 1/2. A person can name anyone as their bene(s) as long as they have an insurable interest in the life of the insured.