life ins. beneficiary after divorce

[dobies3]

What is the name of your state?

michigan. my son died last week, only 3 weeks after his divorce became final after a 2 year marriage. he was on disability and did not change his beneficiary before he died. his ex-wife was primary and i, his mother secondary. from what i understand, michigan state law says his wife would not be entitled to the insurance money but the insurance company says they have to look into it. my son does have a 1 year old daughter. this life insurance policy through his employer is $50k. he also had a small 401 plan. this marriage and divorce was a bad one and his ex laughed in my face when she found out she might get the money. who will be entitled to this money? i don't want the ex to get it, but if she does, then i think a trust should be used for my granddaughter. i was only going to pay off the funeral costs and his bills and then do the same for my granddaughter. the insurance co (metlife) is being very unhelpful to me. i'm mourning my son and now all of this. thank you.
cindy

 

[ALawyer]

This is one for you to get specific advice from a lawyer in your state on. It is more a matter of state divorce law than insurance law.

In some states a divorce voids all pre-existing beneficiary designations in favor of a spouse, and in others it does not. In some cases the topic also is covered in the divorce decree and/or separation agreement, if any.

I do not know what MI law is on the subject and guessing is dangerous -- which is why the carrier, MetLife, probably does not want to guess -- and risk the same claim paying twice.

If the beneficiary designations are voided, then the proceeds would be payable to his estate and I have to assume the child would be the sole beneficary of the estate (that's a guess). But if that's the case, the money would be held for the child until s/he turns 18, typically subject to earlier withdrawals only with court permission, and that means never.

 

[dobies3]

thank you for responding, is it still the case if i am also named as a beneficiary...second in line? i think i will have to consult here but do attorneys have to have a retainer fee to start? i have no money to even start with.
cindy

 

[RickBryan]

Policy beneficiary

I'm saddened at the loss of your son. I hope he was a good man and that you will see him again in heaven, but not yet.

Your question poses a very complex question of law, and my guess is that's why the insurer is 'being unhelpful', they're an insurance company, not a law firm. They can't give legal advice, and neither can anyone in this forum without seeing all the documents (divorce decree, insurance policy, 401(k) plan benefits booklet, other assets owned by your son at the time of his death, etc.), and then comparing those to Michigan law.

What you're going to have here is one big legal mess that's going to last for years, and the attorney will probably end up with more then you or your ex-daughter-in-law after fees and costs.

Let me suggest that you talk to an intermediary, a third party known and trusted by both you and your wife, and your ex-daughter-in-law, that can negotiate a compromise between the two of you. Although you are still hurting at the loss of your son, for everyone's sake *you must settle this disagreement without getting lawyers involved* as soon as possible. Put the matter behind you, forget about your ex-daughter-in-law, continue mourning your son, and move forward. Live the rest of your life in a manner to make your son proud his parents are so noble.

Rick Bryan
New York, NY