Life Ins Beneficiaries

[CrysnJ795]

What is the name of your state (only U.S. law)? Ohio

My grandma has a life insurance policy listing my mother as the sole beneficiary. My grandma is gravely ill and has been placed in hospice care....upon her death does my mom have to split the benefits with her siblings?

 

[ShyCat]

No. If she is the sole beneficiary, the money is hers alone. If she chooses to share, it's a gift to her siblings, nothing more.

 

[CrysnJ795]

with additional information from my mom....

the policy was written 6 months ago, My mom is POA and took the policy out to help cover ending expenses to pay the nursing home and anything more than what her toher life insurance policies would not cover....now my grandma was not of mind to take out that policy though it is clearly needed....

for the fact that my mom was the one to take out the policy and her siblings are aware of the fact that my grandma pays for it out of her SS benefits and pension payments...do the siblings have any legal right to any of the funds left over?

 

[ecmst12]

That doesn't sound right, someone that sick should not be able to get a new life insurance policy written...especially if she was already on hospice at the time! I think there are some mixed up details.

 

[ErinGoBragh]

That doesn't sound right, someone that sick should not be able to get a new life insurance policy written...especially if she was already on hospice at the time! I think there are some mixed up details.

It COULD be some sort of GLI, but the policy premium would be so high it wouldn't be worth it... color me confused as well!

 

[ecmst12]

Now, grandma didn't have to be of sound mind for mom to take out an insurance policy on her, and grandma didn't have to pay for it either. Mom could have been both the owner and the beneficiary of the policy and while grandma would have been notified, she wouldn't have had to agree, she would just have to submit to the medical questions if any.

And, the money still belongs to the beneficiary alone, she would NOT be obligated to pay any of grandma's bills with this money. If there were outstanding medical/nursing home bills, those would be paid out of her estate and if no estate, they would get written off, not passed down to the heirs.

 

[CrysnJ795]

ok a) I was confused it was not a new policy but a term to whole conversion. because of health condition premium was about to sky rocket.... Hospice was just called in 2 weeks ago...

b) its not a graded premium benefit

moms main concern was whether her siblings have any legal avenues to take the money from her....she had intention of sharing but the greed is becoming overwhelming to the fact that mom is wanting to donate what is left over after funeral expenses to grams fav charit!!!! Thanks For the info...if you can think of anything else I am definitely wanting to know to protect my mom......aunts are screaming that they are calling an attorney.....

 

[justalayman]

and the greedy relatives have a problem with donating the remainder of the policy to charity?

Oh well.

she doesn't have to use any of it for grandma's needs if she doesn't want. Since this was simply a converted policy (not a new policy), unless you have something that would be seen as improper, mom gets it all.