QUESTION
Am I legally bound to give her family the survivor benefit?
Asked on Oct 26th, 2012 on Estate Planning - Michigan
More details to this question:
My ex-wife died in a car accident. The car was in my name but the insurance was in hers. Her family wants the $1500 funeral allotment from her insurance plus the $3000 survivor benefit. I now am caring for our son. What will happen if I don’t give them the survivor benefit? I have every intension of giving them the funeral allotment but she also has another ex-husband with two sons by him and the family has not asked him for help with the burial costs.
11 ANSWERS
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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No. Why would you be?
Answered on Jun 13th, 2013 at 2:02 AM
Leonard A. Kaanta
I would need to see the insurance policy.
Answered on Oct 29th, 2012 at 5:32 PM
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From your questions and the facts presented it is difficult to determine all of the facts. You do not state who was the beneficiary of the insurance policy. Was it your son, the estate, etc.? You do not state if your son is a minor, or if the other children are minors. The children's ages and status may make a difference with regard to the who is entitled to the survivor benefit. As far as the funeral benefit, I suggest that you pay that directly to the funeral home making the arrangements as that is the intention of the money and that way you will know that they have received the money allocated for that purpose.
Answered on Oct 29th, 2012 at 5:32 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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You do not give enough information to answer this question. However, if the insurance policy listed you as beneficiary you get the benefits.
Answered on Oct 29th, 2012 at 5:31 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Assuming former wife was the one insured, her heir would be entitled to the benefits of the policy, and that would be her children as they are direct lineal descendants, not anyone else, and the funds would need to be placed in a blocked trust account for them. Make a demand upon the insurance carrier to pay the benefits to you on behalf of the children.
Answered on Oct 29th, 2012 at 5:31 PM
Administrative Law Attorney serving Sherwood, OR
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Employment Law Professionals Northwest LLC
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The estate of a deceased person is required to pay the funeral costs from the estate prior to any distribution on the estate. The insurance benefits will go to whomever is the named beneficiary and the insurance company will generally distribute them directly to the named beneficiary.
Answered on Oct 29th, 2012 at 5:30 PM
Elder Law Attorney serving Hollister, CA
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Charles R. Perry
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I am sorry to hear about your ex-wife. The survivor benefit legally goes to the named beneficiary under the policy. If there is no named beneficiary, then the survivor benefit becomes part of your ex-wife's estate and would pass according to the provisions of her will. If she had no will, then the benefit would pass by the laws of intestacy.
Answered on Oct 29th, 2012 at 5:30 PM
Business Law Attorney serving Livonia, MI
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Gerald A. Bagazinski
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Give them the funeral allotment. The survivor ship benefit keep in an UGMA or restricted account with the bank for your child.
Answered on Oct 29th, 2012 at 5:29 PM
Thomas Edward Gates
Unless the insurance policy listed you as the beneficiary, you have no rights to the money.
Answered on Oct 29th, 2012 at 5:29 PM
Insurance policies are contracts payable according to their terms. Her family has no right to any benefits except what the insurance says.
Answered on Oct 29th, 2012 at 12:45 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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If you are the beneficiary, it would depend on the terms of your divorce agreement/property settlement, as well as State law. Federal law provides that the payment should be made to you. Whether or not the policy is covered by ERISA may dictate whether or not you get to keep the proceeds or not. In Michigan, there has been a LOT of cases on this topic, recently. Earlier this year, we were successful in protecting an ex-spouse's right to the insurance. You do not have a lot of money at stake, so it will not be likely they will pursue this in court, and if they do, it would likely be a small claims action. Otherwise, they would eat up in court whatever they would otherwise receive. I think it is good that you are providing the money toward the funeral. It is likely that is what they intend to use the rest of the money for, as well. Is insurance also paying you for the vehicle?
Answered on Oct 29th, 2012 at 12:41 PM