Benificiary on policy or divorce papers?

[Dandy Don]

Is there anything in the divorce decree that mentions what happens if he doesn't name the children as beneficiaries? Is there anything in there to penalize him if he doesn't meet the requirements? Did you at any time check with the insurance company to see if they were ever named as beneficiaries? Did you ever check with his employer to see if the children were ever named as beneficiaries on his retirement account?

DANDY DON IN OKLAHOMA ([email protected])

 

[BoredAtty]

Have the proceeds been paid out to the father since you last posted? The father didn't kill the insured & the ins. co. can't tell a bene what to do with his money or the money from the ins. proceeds. If the money hasn't been paid out yet, it will prob. go to the father since he is named bene but you can try putting in a claim -- send along a copy of death cert. with a copy of the divorce decree as indicated previously.

I don't know the answer off-hand (I would need to research), but I wonder if the judge could create a constructive trust with the proceeds, notwithstanding the fact that the father did nothing wrong himself. Have you heard of that in this type of case?

 

[Betty]

Not really - not at the ins. co. I worked for. I think from my experience the father (if he is indeed named bene) would be given the proceeds by "my" company to do with as he wishes. The OP can certainly put in a claim though. I can't say with 100% certainly what any particular co. or judge (if it went to court) would do. I believe it is something a judge could do (set up a constructive trust) but not sure they would in this case. Our co. & what I know of courts doing on our cases that did go to court the named bene in the pol. would most likely always get the proceeds. Pol. provisions would be followed paying the proceeds to the named bene. That was mainly normal procedure where there were multiple claims. A lot of times the person the insured wanted to get the proceeds didn't because they never did a change of bene form when their family situation changed. They many times changed their will but they seem to forget about changing the bene on their life ins. policies & the co. has to pay the bene named.

 

[skale7179]

Is there anything in the divorce decree that mentions what happens if he doesn't name the children as beneficiaries? Is there anything in there to penalize him if he doesn't meet the requirements? Did you at any time check with the insurance company to see if they were ever named as beneficiaries? Did you ever check with his employer to see if the children were ever named as beneficiaries on his retirement account?

DANDY DON IN OKLAHOMA ([email protected])

No, nothing in the divorce decree that says what will happen if he doesnt follow it.

Our Lawyer is working on getting a copy of the policy and also looking into the retirement account.

 

[Betty]

Ok. Thanks for the up-date. You'll just have to wait & see what your lawyer can do for you.

 

[nextwife]

In our divorce papers it states that he/I are suppose to name our children as benificiaries on any life insurance policies or retirement funds.

Honestly, there are a LOT of problems with such broad language in a decree.

First, while it makes sense to allocate a specific insurance policy or asset to have you or the children named as beneficiary, the idea of any and all policies or retirement funds that he might have ever added in the future being only designated to the kids of a first marriage is legally problematic. Future spouses or children are also entitled to their share of a decedant's estate, and a future spouse has a legal, marital right to retirement funds that may accrue during their marriage (it didn't happen, but it could have). And one can't prohibit future additional policies from naming other parties as beneficiaries.

Seems to me that each divorcing parent should own a policy against the other's life. That way, they as owner control both beneficiary designation and whether it is allowed to default. I'll never understand why more women don't just buy and own policies against their spouse. Obviously, they need to both be in the loop at the time the policy is purchased.