QUESTION
Does my stepmother have any grounds to get our money or do any documents trump the life insurance beneficiaries?
Asked on Feb 16th, 2014 on Estate Planning - Utah
More details to this question:
My father passed about a month ago. My stepmother signed for the funeral. But my father left me and my two sisters as beneficiary's. For personal reasons me and my sisters decided against paying for the funeral, so she has hired an attorney and is appealing the life insurance. I'm guessing on the grounds that my dad was incompetent at the time of his death. He was very competent and of sound mind when he named beneficiaries. As this was done when we were much younger. I believe he has a will but do not know what was in it. Does my stepmother have any grounds to get our money or do any documents trump the life insurance beneficiaries? We haven't got our money yet as it's on hold because she is appealing. Any helpful information is appreciated.
9 ANSWERS
2 Awards
It is hard to say. Was the policy a funeral policy or a straight life insurance policy? Call an attorney, discuss the details, and see what can be done.
Answered on Feb 20th, 2014 at 4:43 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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It is unlikely that she will be successful, but it is not impossible. She may try to claim the funds on the basis that there are administrative expenses that need to be paid. The administrative expenses are normally chargeable against probate assets, only, however, and insurance proceeds are not typically a part of an estate. It is possible that the insurance company will get tired of fighting and simply pay the funds into the court. The judge would then decide what to do with them.
Answered on Feb 19th, 2014 at 8:28 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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You need to talk with a local probate attorney. I can't imagine that you would be charged with the cost of the funeral, but each state is different.
Answered on Feb 19th, 2014 at 8:28 PM
You and your sister are not responsible for paying for your father's funeral. Those funds should come from the assets of his estate. If you were personally named as beneficiaries of the insurance policy, the funds should be delivered directly to you by the insurance company.
Answered on Feb 19th, 2014 at 8:28 PM
Edwin K. Niles
The beneficiary designation should stand up. However, the insurance company will likely hold up any payment if they are put on notice of a dispute, as they don't want to be on the wrong end of a suit.
Answered on Feb 19th, 2014 at 8:27 PM
3 Awards
Funeral expenses are the highest priority to be paid. The policy should be reviewed, you may possibly be liable to her for the cost of the funeral and possibly more. You need to retain an attorney to advise you.
Answered on Feb 19th, 2014 at 8:27 PM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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The beneficiary designation on the Life Insurance policy controls and is not affected by the terms of a Will or Trust. The legal capacity or competency of the insured at the time the beneficiary was designated could be the subject of a challenge. There is also precedent for the application of Insurance proceeds to pay funeral expenses but in such a case the expenses would be reimbursed by the estate as an administrative expense before other, lower priority, creditors or distributions are made. You as the beneficiary would have to agree to the assignment of the death benefit to the funeral home.
Answered on Feb 19th, 2014 at 8:26 PM
Creditor's Rights Attorney serving Clayton, MO
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Fluhr & Moore, LLC
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If the life insurance company thinks she has any right to the money, it will file an inter-pleader action in court. An inter-pleader action turns the money over to the court and the people who claim right to money fight it out. I assume you have made claim to the money from the insurance company already. If you have not , you should immediately. If an inter-pleader is filed, you will need to get a lawyer. If not, the insurance company will send you the money.
Answered on Feb 19th, 2014 at 8:24 PM
Business Attorney serving Orem, UT
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Kirton & McConkie A Professional Corporation
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A life insurance beneficiary designation generally trumps whatever is in the estate planning documents. The insurance proceeds should not be subject to your stepmothers claims.
Answered on Feb 19th, 2014 at 8:23 PM