Who gets the benefits? Help!

[beckyfrank65]

My son-in-law was killed in Iraq. He and my daughter were separated, but their divorce had never been finalized. He, in fact, had been talking with her weekly and wanting reconciliation when he was to return in January.

He had a life insurance policy with the military for $250,000 and designated his mother as the beneficiary at the time he filled out the paperwork. His intent was for her to set up a trust for his two children, ages 2 and 5.

The question is, since he is still legally married to my daughter, who is entitled to the benefits of the policy? My daughter wants to set up a trust for the children, but my son-in-law's mother just wants to keep it in her own account. She didn't appear interested in setting anything up for the children.

What legal recourse do we have?

 

[Bigfoot]

Probably no recourse.

If he had wanted his children to be the beneficiary, he could have put their names down as such, and the proceeds would have been put into a trust account for them until they reached adulthood. In this case, the guardian could have petitioned the courts indicating that a hardship exists, requiring some of the funds provided immediately.

 

[Dandy Don]

Is there anything in writing (in a letter, for example, or in the divorce papers) that confirms that his intention was for this money to be set up in a trust? Does his mother know that this was his intention?

Will the daughter and/or the children be receiving any type of benefit from the military for this man's death? Are there any other assets in this man's estate?

 

[beckyfrank65]

During the mediation phase of the divorce that never happened, the attorneys on both sides agreed that the children would have a trust setup for them and that his mother would be named the trustee. This was our son-in-laws intent when he took out the extra insurance. He made it very clear that the money was for the children and there are drafts in the paperwork that indicates this intent.

His wife is entitled to survivor benefits from the military because the divorce never happened before he was deployed.

We don't want the benefits for ourselves or for our daughter. We just want a trust setup for the children so that they are taken care of as their father intended. I just hope their grandmother understands that. However, she doesnt' seem to be in the best shape financially and so our concerns are that she will spend the money and only a minimal amount would be left for the children. Since there is no official document dictating the appropriation of the funds, then there is the concern that the children will be left out.

Greed isn't a pretty thing, is it?

 

[Bigfoot]

2 attorneys making an arrangement, forgot to include the insurance company--the financial portion?