Term Life Insurance, Contested Change Of Beneficiary

[Kerrick]

A little background: About a month ago, my father-in-law ("Bob") called my husband and relayed that his wife of 10 years had suddenly left him. She ("Sue") cleared out their account (six figures), took approximately $80k out of their safe then disappeared for two days, after which she called to advice him that she was leaving him.  Bob also found out that she had been having an affair and was leaving him for this other man.  Bob confided in my husband and they spoke constantly over the phone for the next week and half.  During this time, Bob informed my husband that he was changing his life insurance beneficiary and executor on his will from Sue to my husband.  The beneficiary change was made however, unfortunately Bob passed away about a week later.  Sue was deemed executor and is now heir to Bob's small fortune, however, she has decided that she also wants the life insurance money (she was the first to call in the claim, just hours after Bob's death).  My husband received the claim forms, completed and returned them to the life insurance company.  The company had finalized their review and pmt of the benefit was being processed when they received a letter from Sue's attorney that the beneficiary change (from Sue to my husband) was being contested.  The attorney letter states that Sue and Bob had a contract together stating that he would never change his beneficiary, etc., from her to anyone else.  The insurance company advised my husband that they have nothing of the sort on file (i.e. the "contract" was never provided to them), but they must allow 15 additional days, by law, for submission and review of evidence.  My question is this: assuming Sue does hold some type of agreement or contract signed by both of them stating that he won't / can't make a change of beneficiary, is it irrelevant as the insurance company was never provided with such?

[Videl]

Again, it's a complex issue and there may be some marital statutes that come into play.

You'll just have to wait and see.

 

[Rover]

Kelkel80:My question is this: assuming Sue does hold some type of agreement or contract signed by both of them stating that he won't / can't make a change of beneficiary, is it irrelevant as the insurance company was never provided with such?

My 35 years in the insurance industry tells me that the insurance company is not likely to be bound by that contract since it was not a party to it.

However, depending on the nature of the contract and any appropriate state laws regarding marriage obligations I'm not going to guarantee that.

But I'm not going to speculate either.

You are going to have to get a copy of that contract if the decision goes against your husband. Meantime all you can do is wait.

[Daryle]

Even if she could produce a contract he supposedly executed and it was witnessed by the Pope and your Governor I fail to see  that contract  bears on the insurance firm and its duty to pay the named beneficiary.

 

If the  wandereing wife has a claim its against his estate--and the life insurance is not part of his estate.

[Chalmer]

Where is the new beneficiary in all this --said person should be insisting that life insurance firm honor the contract as it is written without further procrasternation.

 

 

[Bryan]

Thanks for that reaction!  While my partner talked using the insurance provider, they relayed exactly the same info you express inside your frist stage (the insurance company isn't apt to be bound by that contract because it wasn't an event to it).  They, obviously, can't provide us a tangible solution simply yet as they're expecting bill and overview of this document.  Our spouse and that I genuinely believe that the "agreement" Sue is referrencing will be the seperation deal her lawyer wrote that she was pressing Frank to sign.  Frank informed my spouse he hadn't authorized Something (before his death). . . It's probable he did signal it last second and/or that his trademark was forged.  Nevertheless, it had been not submitted through the courtroom and a duplicate wasn't delivered to the insurance company.  We reside in California, if that assists any?