Who gets money from life insurance policy.

[fyrecatt]

*Texas*
I am my father's only child. He passed away in 1996. About a week ago we became aware that he had a life insurance policy that no one knew about. He had taken it out in 1974 (four years before I was born) and listed my mother as the beneficiary. He never updated it to include anyone else. However, he and my mother divorced around 1985. He was married to another woman when he passed away.
The insurance company said that when he and my mother divorced it disqualified her as the beneficiary. They said that it would then go to his next of kin, which was the woman he was married to when he passed away.

I just wanted to know if this is accurate or if I would have any claim since I am his only child.

Thanks

 

[I AM ALWAYS LIABLE]

*Texas*
I am my father's only child. He passed away in 1996. About a week ago we became aware that he had a life insurance policy that no one knew about. He had taken it out in 1974 (four years before I was born) and listed my mother as the beneficiary. He never updated it to include anyone else. However, he and my mother divorced around 1985. He was married to another woman when he passed away.
The insurance company said that when he and my mother divorced it disqualified her as the beneficiary. They said that it would then go to his next of kin, which was the woman he was married to when he passed away.

I just wanted to know if this is accurate or if I would have any claim since I am his only child.

Thanks

My response:

The insurance company is correct.

Life insurance benefits NEVER get paid to the Estate, unless no beneficiary has been named. In this case, your mother's name was correctly replaced with your stepmother's name, and it all goes directly to her, skipping his estate.

In summary, you're entitled to nothing from the insurance proceeds.

IAAL

 

[CIAA]

IAAL,

If the 1st wife was disqualified and no new beneficiary designated, ( "He never updated it to include anyone else."), then would it not be the estate, in which case the son would be entitled to 50% ?

 

[I AM ALWAYS LIABLE]

IAAL,

If the 1st wife was disqualified and no new beneficiary designated, ( "He never updated it to include anyone else."), then would it not be the estate, in which case the son would be entitled to 50% ?

My response:

No. The presumption, in a "community property" State, such as Texas, is that when one spouse is disqualified, the current spouse is presumed to be the lawful beneficiary. This is because the father named a beneficiary prior to death, and thus, manifested the "intent" to name his current wife. Therefore, one name is substituted for the other.

IAAL

 

[I AM ALWAYS LIABLE]

In Texas, even if a person forgets to change the beneficiary on a life insurance policy after getting divorced, the ex-spouse will not receive any of the money. Rather, the proceeds will be paid to the alternate beneficiaries. Current law (in Family Code Sections 9.301 and 9.302) provides that beneficiary designations in favor of divorced spouses are "not effective" unless the divorce or annulment decree states otherwise, the ex-spouse is redesignated as beneficiary after the divorce or the ex-spouse is designated to receive the proceeds in trust for children. Otherwise, it goes to the new spouse - - and this is the reason why I mentioned the fact that Texas is a "Community Property" State.

IAAL