QUESTION
Can the policy holder of death insurance be sued if they do not distribute the money evenly between siblings?
Asked on Mar 27th, 2014 on Litigation - Michigan
12 ANSWERS
Chapter 7 Bankruptcy Attorney serving Syracuse, NY
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Andrew T. Velonis, P.C.
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First of all, it's called life insurance, not death insurance. The policy holder is the person whose life is insured. So, during his lifetime, the policy holder can designate whomever he wants as beneficiary, in whatever proportion he chooses. Once the insured is deceased, the insurance company is required to distribute the money according to the terms of the policy.
Answered on Mar 31st, 2014 at 7:04 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Maybe, but what did the designation of beneficiaries say? The decedent may have instructed that 30% goes to one child and 70% to the other. In that event, the insurance company would be wrong to distribute the money evenly.
Answered on Mar 31st, 2014 at 7:04 PM
Edwin K. Niles
Literal answer: Anyone can sue anyone. Successfully? I doubt it.
Answered on Mar 28th, 2014 at 9:04 AM
Bankruptcy Attorney serving Federal Way, WA
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Freeborn Law Offices P.S.
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Depends upon what the insurance policy says and if the person had a will..
Answered on Mar 28th, 2014 at 9:04 AM
Personal Injury Attorney serving Kent, WA
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Law Offices of Wayne J. Wimer, Inc. P.S.
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If the policy provided for equal distribution between the siblings, then that is precisely what needs to happen in order to avoid getting sued.
Answered on Mar 28th, 2014 at 9:03 AM
Thomas Edward Gates
The policy holder can designate the policy's distribution in any fashion it sees fit.
Answered on Mar 28th, 2014 at 9:03 AM
More information is needed in order to adequately answer your question, such as, do you mean beneficiary of the policy? If so, how many beneficiaries are there? Is there a will that states how the money of the policy is to be distributed? If the only beneficiary is "Jane Doe" and there isn't a Last Will & Testament or the Will states that the proceeds of the life insurance policy shall be distributed as stated in the policy, and again, Jane is the only beneficiary, then, Jane is the only one entitled to the money and can distribute it as she sees fit.
Answered on Mar 28th, 2014 at 9:03 AM
The policy holder has to be dead to have a distribution. So they don't do the distribution, the insurance company does the distribution in conformity with the terms of the policy that name the beneficiaries and shares to distribute.
Answered on Mar 28th, 2014 at 9:03 AM
Automobile Negligence Attorney serving Orlando, FL
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Kelaher Law Offices, P.A.
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The money has to be distributed based upon the express wording of the policy as to who the beneficiary is.
Answered on Mar 28th, 2014 at 9:02 AM
The company issuing the death benefits must follow the instructions given by the deceased; if it does not, it can be sued. But that does not mean it is evenly distributed among siblings, as the instructions may say otherwise or a child might be below the age of majority and a guardian might have to be appointed [I do not think this automatically occurs, it just might in some cases].
Answered on Mar 28th, 2014 at 9:02 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would have see the contract and the beneficiary designation in order answer your question.
Answered on Mar 28th, 2014 at 9:02 AM
James Eugene Hasser
It depends on who is named as the beneficiary or beneficiaries. The siblings may not be named as beneficiaries. If they are not named, they are not entitled to any of the proceeds. The insured gets to decide who benefits from that policy.
Answered on Mar 28th, 2014 at 9:02 AM