Life Insurance Beneficiary

[drog]

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

My father passed away and had a life insurance policy that listed my mother as the beneficiary. They have been divorced for a couple of years now and he never changed the beneficiary. My father was a resident of CO. My mother and all the children live in WI. The insurance company sent us a letter after we told them that our parents were divorced that according to WI law, the insurance benefit will be turned over to the estate. Can my mother still receive the benefit if we want her to to avoid entering the estate? Also, shouldn't the insurance company follow CO law because my father was a resident there?

 

[moburkes]

If he lived and died in CO, then I would believe that CO law would be the law that is followed. A few states have this type of law that, after a divorce, the beneficiary is "released" and the proceeds would go to the contingent bene, and if none, to the estate.

 

[Dandy Don]

Where is the insurance company located?

How much is the payout? You don't need to avoid probate, and it can't be avoided, anyway. Did your father leave a last will and testament? She is entitled to a certain portion of the estate as a surviving spouse, so probate is needed to divide up the money properly among mom and the other heirs. If the heirs then feel they want to donate additional money to mom, that is their choice.

DANDY DON IN OKLAHOMA ([email protected])