Wits End

[HChuck]

What is the name of your state? Massachusetts
My husband and I have been married for 9 years and prior to marrying we each opened a $100K life insurance policy with our parents as beneficiarys. After we married we changed the beneficiarys to each other and my husband included his children as contingent beneficarys.

My husband is terminally ill with little time left and his ex-wife is seeking 1/2 of his policy on behalf of her children, for college even though these children have no desire to go to college. The judge is willing to grant her this request even though Social Security will be paying her well of 1K a month and I will only be receiving $250.

My husband has been out of work for 9 months, and social security will not become effective until Dec 2005, which will probably after his death. We have incurred $40K in debt, depleted my 401K and stock and will not have enough money to pay for a funeral and replenish my retirement if his ex-wife is granted her request

Can anyone help? Do you know of a case where the ex-wife did not win this case or of how and what can I do to prove these funds will need to be used to remove my debt, pay for the funeral expenses and bring up my young daughter?

Thanks

 

[Dandy Don]

Is there some type of divorce proceeding occurring now or is that over and the ex-wife is just taking him to court again to try to get this money?

If possible you or your husband should suggest to the court that whatever he awards for the children should be a separate judgement unrelated to the insurance policy.

You will really need to wait and see what his specific ruling is and what guidelines he sets up for the money to be paid before you can figure out a strategy of what else to do, but you should hope and pray that he does not specifically mention that the beneficiary designation percentages be specifically changed to multiple beneficiaries (which can be done if necessary by your husband contacting the insurance company to make such a change, such as child 1 receiving 25%, child 2 receiving 25% and you receiving 50%) and hopefully he will just leave it generically that you are SUPPOSED to pay the children out of the full $100,000 check that you receive. If he makes no specification then legally you can keep the entire amount yourself without having to pay the children.

You need to be consulting with an attorney who can perhaps find if there is previous case law regarding this.

DANDY DON IN OKLAHOMA ([email protected])

 

[HChuck]

State of Massachusetts

Danny Thank you for your reply.

Divorce proceeding ended 13 yrs ago, but unfortunately Death makes people greedy.

I like you, am hoping that we can reach an agreement. I was thinking of offering to his ex-wife that $6k be put aside for her 2 children and the same done for my child, as this seems only fair. These funds should be put into trust for school and if the children decide not to attend the funds will remain in TRUST until the age of 25 to follow the guidelines of my husbands will. This will ensure the money is used by and for the children and not for the greed of his ex-wife

I have calculated the debt to my 401K with taxes and penelties, my husbands lost wages, medical expenses, funeral expenses, credit cards etc and I have reach a total of $84K and this is how I have reached the $6K offering.

Unfortunately the judge originally thought that a 25% distribution was fair for all. This was until he heard the annual income of Ex-wife was 93K plus an additional $13K from Social Security.

I do have an attorney and as of todays date he has not specifically found a case that falls under the above.

Can you point me in the right direction?