Life Insurance Beneficiary Question

[DannyW]

Let's say a couple are married for 30 years. While married, the husband takes out a life insurance policy on himself, without telling his wife, and names another completely unrelated person (to him or his wife) as the beneficiary. He secretly keeps the policy paid up in full. Then he passes away.

Since he did this without telling his wife, and used money the couple earned during their marriage, does the wife have any legal standing concerning the insurance payout? Or is it tough luck, the named beneficiary gets all the money?

Right now this is a hypothetical question for someone I know. But recently some documents have been found that could make it a real question. At that time I will point her to an attorney. For now I'm just curious if anyone here has been through something like this, or knows someone who's been through it.

 

[cddogfan1]

Not a lawyer. But my understanding is who ever name is on it gets the full benefits. Same as if there is a bank account and it has another person listed on it. At time of death that person gets all the money in the account. I know the bank example is right as I ran it through a attorney when I was the executor to a relatives estate and had to settle the estate.

 

[lagrangedave]

If you can leave it to your cats. See Auburn Veternary school. You should be able to send it to a friend.

 

[Spotlite]

Beneficiary gets the money. Wife’s word against the dead husband’s word that she didn’t know about it.

 

[Throwback]

@MudDucker

 

[JustUs4All]

It should not matter whether the wife knew about it or not unless the dead guy stole the money for the premiums from her and even then it probably would not matter.

 

[notnksnemor]

Lawyer
Probate Court
Nobody gets anything for a long time except the lawyer.

 

[JustUs4All]

Insurance benefits paid to a 3rd party beneficiary do not pass through the estate.

 

[Jim Baker]

Insurance benefits paid to a 3rd party beneficiary do not pass through the estate.

That's right. Going through that right now. The terms Heir and Beneficiary are not interchangeable. Life Insurance is paid to the beneficiary not to heirs of the estate. There are many reasons a beneficiary would not be and heir. In our situation the benefits from life insurance went to the estate of the beneficiary and was distributed to heirs of that estate. Not to other heirs of the insured.

 

[DannyW]

Insurance benefits paid to a 3rd party beneficiary do not pass through the estate.

Thanks for the replies guys. I suspect this is the correct answer. Again, don't know the husband did this but the wife has found a couple life insurance policies with paid up receipts that she knew nothing about. The paperwork was not what I would call hidden, but it wasn't stored anywhere it should be or somewhere she would normally look.

It wasn't a sudden or unexpected death, and he never told her anything about their existence.

She's trying to work with the insurance companies but is running into obstacles. (One company passed her around for 1 hour and 45 minutes before dropping her call.)

Without going into too much detail, the whole estate is a real mess...the more she digs, the more questions come up. Unknown PayPal account, receipts where Bitcoin was purchased, receipts for gold and silver bars, etc...

I feel for the widow.

 

[Milkman]

Not to be judgmental but it seems there was a real lack of communication/trust in that relationship.
I assume they were older, How long were these people together?

 

[JustUs4All]

The executor of that estate will earn any fees he receives. The probate process in GA can be pretty simple if the deceast had taken the time to write a good will and leave a record explaining where everything is.

 

[DannyW]

Not to be judgmental but it seems there was a real lack of communication/trust in that relationship.
I assume they were older, How long were these people together?

Married 35 years. And yes, I shake my head about why it lasted more than 5 years.

 

[DannyW]

The executor of that estate will earn any fees he receives. The probate process in GA can be pretty simple if the deceast had taken the time to write a good will and leave a record explaining where everything is.

The wife is the executor. And they did a new will, with an attorney, about 6 months ago. Where it went off the rails is the husband didn't disclose all the accounts, passwords and documents he had.

For example, the wife found a receipt for the purchase of Bitcoin. Not much...a $500 purchase. But she has to go down that rabbit hole because there's no telling how long he had been buying Bitcoin. What if he made similar purchases 5-6 years ago?

Do you know how hard it is to physically contact someone about cybercurrency?

She is having a tough time with it. I have recommended she hire a Private Investigator who specializes in asset search/recovery.

 

[hayseed_theology]

Thanks for the replies guys. I suspect this is the correct answer. Again, don't know the husband did this but the wife has found a couple life insurance policies with paid up receipts that she knew nothing about. The paperwork was not what I would call hidden, but it wasn't stored anywhere it should be or somewhere she would normally look.

It wasn't a sudden or unexpected death, and he never told her anything about their existence.

She's trying to work with the insurance companies but is running into obstacles. (One company passed her around for 1 hour and 45 minutes before dropping her call.)

Without going into too much detail, the whole estate is a real mess...the more she digs, the more questions come up. Unknown PayPal account, receipts where Bitcoin was purchased, receipts for gold and silver bars, etc...

I feel for the widow.

I have been serving as the executor of my aunt's estate. She passed relatively suddenly. I had no idea about any of her finances. It's hard to track stuff down because banks don't want to disclose any info at all. Retirement accounts and insurance policies with beneficiaries named pass outside the estate. We were completely thrown for a loop though when her deceased husband was listed as the beneficiary on a life insurance policy and the insurance company decided that it wouldn't just go to the estate. Instead, the insurance company themselves have a process for determining who they thought it should go to. Lawyer said, "I've never seen this, and I don't think it's right." Only to come back and say, "Looks like they can do whatever they want." It's a difficult process and was further complicated by the fact that it was a blended family with some tension already present.

 

[JustUs4All]

It might be less expensive to just let go of what she can't find. The courts deal with this sort of thing with some regularity. They will expect her to make a reasonable effort to marshal the assets but reasonable would not include paying thousands to try to find hundreds.

I recommend that she access his known checking accounts, telephone, and computer. A careful review of clues present here together with those from the mail over the next six months should be very helpful. She will not be able to complete this one quickly unless she is the sole taker under the will and no heirs wish to contest it.

 

[funnyfarm]

Let's say a couple are married for 30 years. While married, the husband takes out a life insurance policy on himself, without telling his wife, and names another completely unrelated person (to him or his wife) as the beneficiary. He secretly keeps the policy paid up in full. Then he passes away.

Since he did this without telling his wife, and used money the couple earned during their marriage, does the wife have any legal standing concerning the insurance payout? Or is it tough luck, the named beneficiary gets all the money?

Right now this is a hypothetical question for someone I know. But recently some documents have been found that could make it a real question. At that time I will point her to an attorney. For now I'm just curious if anyone here has been through something like this, or knows someone who's been through it.

Bumping this thread as we are going thru similar questions.

My wifes brother named their father beneficiary on a life insurance policy. I understand he did this to keep it away from his wife at the time.

After my wife recently found this a couple months ago in the back of a drawer she contacted the insurance company to let them know he (her brother) passed away a couple years ago.

Well, her dad who was named beneficiary died nearly 20 years ago! So the insurance company wanted death certificates for the both of them which she provided. Then they requested signed forms from surviving heirs of the father. That would be my wifes sister.

So, my wifes sister filled out the form and they sent it back.

So my wife gets a letter from the ins. co. stating due to the fact the beneficiary (their dad) died they now need to list ALL of their brothers wifes (3) along with ANY children (3) that he had. Addresses, ages, etc.

My wife has all the new info on the form and is ready to send it in, but does sound correct?

The ins. co. will not tell her ANYTHING about this claim including the amount of policy, copy of policy, etc. ?

Are they running her around in hopes of not paying? If they are not legally doing these request does anyone know a good estate(?) lawyer in Ga. ?

Any advice would be greatly appreciated, thank you.

 

[GeorgiaBob]

Bumping this thread as we are going thru similar questions.

My wifes brother named their father beneficiary on a life insurance policy. I understand he did this to keep it away from his wife at the time.

After my wife recently found this a couple months ago in the back of a drawer she contacted the insurance company to let them know he (her brother) passed away a couple years ago.

Well, her dad who was named beneficiary died nearly 20 years ago! So the insurance company wanted death certificates for the both of them which she provided. Then they requested signed forms from surviving heirs of the father. That would be my wifes sister.

So, my wifes sister filled out the form and they sent it back.

So my wife gets a letter from the ins. co. stating due to the fact the beneficiary (their dad) died they now need to list ALL of their brothers wifes (3) along with ANY children (3) that he had. Addresses, ages, etc.

My wife has all the new info on the form and is ready to send it in, but does sound correct?

The ins. co. will not tell her ANYTHING about this claim including the amount of policy, copy of policy, etc. ?

Are they running her around in hopes of not paying? If they are not legally doing these request does anyone know a good estate(?) lawyer in Ga. ?

Any advice would be greatly appreciated, thank you.

I dealt with this issue when trying to clear the estate of my FIL. Yes, it is normal for an insurance company to request information on all possible heirs and assigns when the named beneficiary is deceased or when their is no defined beneficiary. And, yes, it is normal for the insurance company to try and keep information confidential.

My suggestion is; have a conversation with an experienced estate/probate attorney. Go in with specific questions and ask for clear direction on what to do. You likely will be able to resolve the insurance issue without hiring an attorney to do it for you, but it really helps to get professional advice from someone who deals with that every day.

And sorry, I don't know a GA estate attorney. (FIL issues were mostly from FL, and I did speak to an attorney in Fort Lauderdale, who gave me good advice that saw me through the mess.)

 

[hayseed_theology]

So my wife gets a letter from the ins. co. stating due to the fact the beneficiary (their dad) died they now need to list ALL of their brothers wifes (3) along with ANY children (3) that he had. Addresses, ages, etc.

My wife has all the new info on the form and is ready to send it in, but does sound correct?

The ins. co. will not tell her ANYTHING about this claim including the amount of policy, copy of policy, etc. ?

Are they running her around in hopes of not paying? If they are not legally doing these request does anyone know a good estate(?) lawyer in Ga. ?

Any advice would be greatly appreciated, thank you.

My experience was very similar. Had to fill out a bunch of family tree info. I was the executor, and they wouldn't tell me anything, including the amount. Once they determined who the beneficiary was based on their criteria, they sent a letter to the beneficiary making them aware and asking for further documentation. I don't know that we found out an amount until the check came.

Was your wife the executor for her brother's estate?

 

[funnyfarm]

My experience was very similar. Had to fill out a bunch of family tree info. I was the executor, and they wouldn't tell me anything, including the amount. Once they determined who the beneficiary was based on their criteria, they sent a letter to the beneficiary making them aware and asking for further documentation. I don't know that we found out an amount until the check came.

Was your wife the executor for her brother's estate?

No, he just sent the policy to her for safe keeping. Whats so odd is he was living when his father died but i guess he forgot about the policy being in the dads name?

My wife recently found the policy after all of the above happened.

Thx for your input though!