Posted: 10/28/2012 2:22:01 PM EDT
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My grandmother in law recently passed. She had a will that split stuff X ways where X + 1 = the number of kids she had. The 1 has not spoken to her in 20+ years, but does still speak with the siblings. My M-I-L didn't find out until after she passed that the life insurance policy was still 50% to the 1 (oldest child) and 50% to her ex husband whom she divorced over 20 years ago. Family is dumbfounded as to how GM-I-L could let this slip as she was very meticulous and often told my M-I-L what she should do with her portion of the life insurance policy. She was dying of cancer so I guess it slipped her mind.
Questions to you guys: 1. If the will says "all my stuff" or something of that nature, does it trump the life insurance"trustees?" 2. Any such thing as dropping an ex-spouse from a policy in Texas automatically? M-I-L is quite bummed as the sum is $20k per sibling. She's the executor and she's really beating herself up over assuming that the beneficiaries of the LI policy were correct. |
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Yeah, you definitely need a lawyer and if the payout on the Life Insurance is large, then it may be possible to contest it, and financially worth it. But you need a lawyer immediately. 1 - Probably not, because if her estate was not the beneficiary (Life insurance can be used this way to meet expected death taxes) then the insurance company will pay to the named beneficiaries and it is no long "her stuff" (or property of the estate). 2 - I would be amazed if that were the case. |
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Most states: Life insurance proceeds are actually contractual in nature and pass outside of probate. The Court has no authority to distribute, alter or affect the alteration of the monies from life insurance payouts to identified and living beneficiaries.
I could be wrong, but I'm not aware of any state that would break a contract such as this through probate. The only way the Probate Court could is if the insurance payouts are designated for a trust or a person such that a trust would be necessary (a minor or incompetent). Seek legal help, but almost ALL will/probate matters turn into shitfights between family. It's all a part of the game. |
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Probate court will determine how to distribute the life insurance policy to the survivors. Everything else, too. Don't sweat it, and don't distribute anything until the court gives the go ahead. Will, or not. Life insurance isn't probate property. It is in Missouri and is declared in the estate inventory. In my case, the beneficiary of the policy had been dead for several years. |
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Probate court will determine how to distribute the life insurance policy to the survivors. Everything else, too. Don't sweat it, and don't distribute anything until the court gives the go ahead. Will, or not. Life insurance isn't probate property. +1.... I am going thru all this right now with passing of one of my parents. Life insurance with specific beneficiaries listed goes directly to those people, doesnt matter their relationship with the person that passed away. |
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Probate court will determine how to distribute the life insurance policy to the survivors. Everything else, too. Don't sweat it, and don't distribute anything until the court gives the go ahead. Will, or not. Life insurance isn't probate property. It is in Missouri and is declared in the estate inventory. In my case, the beneficiary of the policy had been dead for several years. That's an odd minority rule |
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Probate court will determine how to distribute the life insurance policy to the survivors. Everything else, too. Don't sweat it, and don't distribute anything until the court gives the go ahead. Will, or not. Life insurance isn't probate property. It is in Missouri and is declared in the estate inventory. In my case, the beneficiary of the policy had been dead for several years. Is it declared and distributed to the named benes, or does the Court/Trustee actually have jurisdiction to sua sponte or after caveat alter the contract? I'm just curious - that would be one stout-assed Probate Court. |
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Probate court will determine how to distribute the life insurance policy to the survivors. Everything else, too. Don't sweat it, and don't distribute anything until the court gives the go ahead. Will, or not. Life insurance isn't probate property. It is in Missouri and is declared in the estate inventory. In my case, the beneficiary of the policy had been dead for several years. Is it declared and distributed to the named benes, or does the Court/Trustee actually have jurisdiction to sua sponte or after caveat alter the contract? I'm just curious - that would be one stout-assed Probate Court. EDITED: Okay - I didn't see that last sentence. Perhaps that threw a wrinkle into the picture. (Sorry for the double post, fellas...) |
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1. If the executor and the potential beneficiaries have contacted a lawyer, you don't have to worry;
2. No lawyer worth his salt would answer your questions without reviewing the documents, no matter what state the lawyer is admitted to practice in. So let's turn the questions around to you OP: 1. do you have a will? 2. when was the last time that you reviewed your will? 3. do you have life insurance or a retirement program? 4. when was the last time you reviewed the beneficiaries of your life insurance or retirement program.? If you or your relatives think grandma was stupid, she wasn't, just a normal person. 10% of the general population die with a will. What does it make the other 90% (besides being dead and potentially fighting over the spoils)? |
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1. If the executor and the potential beneficiaries have contacted a lawyer, you don't have to worry; 2. No lawyer worth his salt would answer your questions without reviewing the documents, no matter what state the lawyer is admitted to practice in. So let's turn the questions around to you OP: 1. do you have a will? 2. when was the last time that you reviewed your will? 3. do you have life insurance or a retirement program? 4. when was the last time you reviewed the beneficiaries of your life insurance or retirement program.? If you or your relatives think grandma was stupid, she wasn't, just a normal person. 10% of the general population die with a will. What does it make the other 90% (besides being dead and potentially fighting over the spoils)? Wow. THAT'S the way to sell the OP on the Legal Services Industry.. 
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1. do you have a will? 2. when was the last time that you reviewed your will? 3. do you have life insurance or a retirement program? 4. when was the last time you reviewed the beneficiaries of your life insurance or retirement program.? 1. Yes, though nothing makes it official because I haven't finalized it in Quicken Willmaker 2. 6m 3. Yes, yes 4. benes correct. I have been meaning to check out a book on trusts but obviously I haven't done it yet, though I do have a trust for NFA stuff. My parents and grandparents both made trusts and it costs almost $4,000 so I'm going to try to do it through Quicken trust maker. The biggest hurdle was getting my wife to agree on where our kids go if we both die. That is settled now, so I should make some progress. I know. |