Life Insurance Beneficiary

[Jodhpur]

My deceased brother had a life insurance policy. He designated a beneficiary, Mom (the only beneficiary listed), and the beneficiary card was sent back to him because the witnesses dated the document the day after he did. He never got the change to correct the card. Therefore, his legally separated wife has put in a claim for the benefits, because the policy has reverted to passing "by-law." According to their separation agreement, the wife waived all rights and interest in any of his property. Mom has contested the insurance claim by the wife. With these facts, what will be the disposition of the life insurance policy? Did the wife waive her rights to the policy via the separation agreement? Will the insurance company side with my brother's true intent to designate Mom as the beneficiary?

 

[ALawyer]

As there are 2 claims for payment, and the insurance company only wants to have to pay once, it probably will file an Impleader Action, and place the proceeds with an appropriate court, and let the separated wife and the mother (or his estate) go fight it out between themselves.

As I don't really know why the insurance company denied payment based on the date of witnessing of the benficiary designation (IT IS VERY UNUSUAL TO HAVE A WITNESS REQUIREMENT) and I don't know what the insurance policy provided, and don't know the exact wording of the separation agreement, and don't even know what state you are in, I can't say more EXCEPT your mother needs a LAWYER NOW.

 

[Jodhpur]

This dispute is occurring in Maryland. In the separation agreement, the separate wife waived "all rights to her statutory share, any inheritance, all rights and interest in any of his property . . . "; it was very extensive, although it did not mention "insurance proceeds" specifically. I believe that the Insurance information package states that the beneficiary card must be properly filled out, but doesn't state anything with regard to the date of beneficiary designation having to be the same as the witnessing of the same document. I was wondering if the courts in Maryland will interpret the original card, designating mom as the beneficiary, as my brother's true intent? Also, if the separated wife waived all rights to "inheritance," then would she be ineligible to receive the proceeds?

 

[ALawyer]

I am NOT a Maryland lawyer and don't know what the courts conclude in that state when a separation occurs, or how they will interpret the wording in the document as the waiver does NOT mention insurance proceeds, although other provisions may mention insurance (often the H has to maintain insurance until all alimony is paid the W).

BUT the questrion as to the date of the witness is very unusual. Mom bertter get a lawyer quickly.