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Life Insurance Payout

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bnative1

Junior Member
What is the name of your state (only U.S. law)? California

My brother's son (my nephew) was raised by his grandmother (my mother). She died in 2005 and custody returned to the birth parents, my brother and my nephew's mother. Two months later, my brother passed away. My brother had life insurance which was left to my nephew, who was 12. The mother was never a part of my nephew's life and tried to get custody, the same with my father, his grandfather. I was then pushed by the rest of my family to get custody of my nephew. I did and was awarded custody. Over the next two years, my nephew proved to be a handful and was in trouble constantly. A lot of the insurance money went to travel costs for treatment, overdue burial costs, headstones, other family members and direct/indirect living costs.

This all occurred while I lived in Nebraska and the rest of my family (including nephew) lived in South Dakota on a Tribal Reservation. I was awarded custody through the tribal court. At the two year point, there was a change in tribal court judges. The court re-visited the custody and awarded my nephew to my father, my nephew's grandfather. I kept what was left of the insurance money. Eventually, it was used during tough times and now nothing remains.

My questions are:

My nephew is turning eighteen soon and is threatening to sue. I want to do the right thing and settle with him for a reasonable sum of money. I do not wish to fight. I know not all of the money was used for his well-being. What is my real liability? What happens if he doesn't want to settle and chooses to sue, will he have a strong case? Will he have to sue me in the State of California (my residency) or could he file in South Dakota (where he is a resident)? Are there any criminal charges that I could be facing?

Of course, this is an overview. There are a lot of details that have been left out but I figured this is a good start.

Thank you for any advice you might be able to give me!

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


Betty

Senior Member
What is the name of your state (only U.S. law)? California

My brother's son (my nephew) was raised by his grandmother (my mother). She died in 2005 and custody returned to the birth parents, my brother and my nephew's mother. Two months later, my brother passed away. My brother had life insurance which was left to my nephew, who was 12. The mother was never a part of my nephew's life and tried to get custody, the same with my father, his grandfather. I was then pushed by the rest of my family to get custody of my nephew. I did and was awarded custody. Over the next two years, my nephew proved to be a handful and was in trouble constantly. A lot of the insurance money went to travel costs for treatment, overdue burial costs, headstones, other family members and direct/indirect living costs.

This all occurred while I lived in Nebraska and the rest of my family (including nephew) lived in South Dakota on a Tribal Reservation. I was awarded custody through the tribal court. At the two year point, there was a change in tribal court judges. The court re-visited the custody and awarded my nephew to my father, my nephew's grandfather. I kept what was left of the insurance money. Eventually, it was used during tough times and now nothing remains.

My questions are:

My nephew is turning eighteen soon and is threatening to sue. I want to do the right thing and settle with him for a reasonable sum of money. I do not wish to fight. I know not all of the money was used for his well-being. What is my real liability? What happens if he doesn't want to settle and chooses to sue, will he have a strong case? Will he have to sue me in the State of California (my residency) or could he file in South Dakota (where he is a resident)? Are there any criminal charges that I could be facing?

Of course, this is an overview. There are a lot of details that have been left out but I figured this is a good start.

Thank you for any advice you might be able to give me!

FredWhat is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?
You "probably" will not face any criminal charges but most likely will have to pay back the amount of money that you used not for his benefit. If you can settle on an amount, be sure to get the settlement in writing.

If you can't come to a settlement & get sued, you will need to get an attorney who you can give complete details of your situation to & ask any questions you might have.
 

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