Life Insurance beneficiary

[vocals40]

What is the name of your state (only U.S. law)? New York
My father recently passed away and he had my brother as executor of his estate, trustee for his revocable trust, poa of my father and so on. When we called the life insurance company to claim the policy, they said the beneficiary was my mother who has been in a nursing home for 15 years under Medicaid. We know my father covered everything and are puzzled as to what happened to the change of beneficiary ?? My brother knows my father completed a form. The policy is valued for $40k and the premiums were all paid up as of years ago. My brother also has his name as an ITF for my mother's bank account for funeral expenses established when my mother was hospitalized. We do not want Medicaid or the nursing hioome to have this money. What can we do ??

 

[ShyCat]

Nothing much. Unless you can prove that the insurance company actually received a properly executed beneficiary change form (not just that your father filled it out), the insurance will be paid to the designated beneficiary - your mother. It will then be used for her own benefit until it is used up.

 

[Dandy Don]

Did brother also have POA from his mother? Is he trustworthy enough to use the insurance money for her care while she is still alive or is it possible he would close the account and take the money out for himself after the insurance money his paid (which he would legally might have the right to do since the account also has his name on it)? Consult with a certified estate planner if you want to find out what to do to protect this money from being taken by Medicaid.

DANDY DON IN OKLAHOMA ([email protected])

 

[vocals40]

Dandy Don - yes, my brother has a POA since 2002 for my mother done when she was in the nursing home, just in case something happened to my father. He is trustworthy but the money was meant for the grandchildren and my brother wants them to get it. That's what my father wanted. Again, we are so puzzled as to how this could have happened when my father was so complete in taking care of his funeral expenses, my mother's, and establishing everything for my brother. The insurance paperwork was delivered to my brother's address and listed him and my mother as beneficiaries. When my brother called this past week to inquire again, they said they made a mistake and it should only be my mother. I have to assume since my brother saw my father fill out the form years ago, they (insurance company) made a major mistake or lost the paperwork. It just doesn't make sense.

 

[ShyCat]

One could also assume that your father neglected to send in the completed beneficiary change form. The insurance company cannot operate on assumptions or suppositions or wishful thinking. Unless your father's records include some acknowledgment from the insurance company of the beneficiary change, then you have nothing concrete to go on.

 

[Betty]

Agree with ShyCat. The ins. co. will pay the proceeds to the bene(s) they have on record.