Insurance

Question: Legal help and life insurance and beneficiary?

(Posted by: Lorri S on 2010-07-26 18:47:31)

Man is separated ( not divorced) for 13 years from his legal wife, she now lives with a boy friend, carrying his child. Husband lived with mother 13 years and passed away but the life insurance policy asked if he was married so he said yes and put her name down. Page two put his mothers name. Does his mother have any rights at all? I forgot their are no children. Him and his mother shared all living expenses, He has lived with his mother during the passed 13 years he was separated from his wife. He named his wife as beneficiary even tho he has not been with her for 13 years. Does his mother have any rights to fight for any of the life insurance?

Posted by: mbrcatz on 2010-07-26, 19:42:11

Are the man and the husband the same person? Assuming yes, mother has no rights at all. Even if he named the mailman, or the chick at McDonalds that handed him his french fries every Thursdsay, that naming is valid. Whoever is named on the policy, gets the money. Keep in mind, most states don't recognize legal seperation. Either you're married, or you aren't. And in MOST states, the spouse is entitled to all assets unless there are children involved. And she's the spouse. You are welcome to consult an attorney, but they're going to tell you the same thing. You don't have a chance of getting his life insurance.

Posted by: Brian A on 2010-07-26, 18:58:22

Not sure I follow your situation but with life insurance, the beneficiary is the one who receives the death benefit/ proceeds. With IRAs the spouse receives the proceeds no matter who the account owner names, unless waived and signed by the spouse. The beneficiary gets the money, not the owner...but usually the owner is the insured or the beneficiary. What company is this with and what is the name of the life product? Page 2 doesn't really help much.

Posted by: wfr21 on 2010-07-26, 20:29:57

The relevant information is the spouse wife, if a named beneficiary of his life insurance policy, has the right to receive the death benefit proceeds. The named beneficiary has the only right to receive the death benefit proceeds. It doesn't matter who is named but whomever is named will receive the proceeds. You refer to "page two " and I can only assume that could be a "Contingent " beneficiary designation page, however, and if so, the Contingent receives only if the Primary is deceased! As far as the right to receive from an IRA, here again, the named beneficiary will be the recipient of the death proceeds. Contrary to another responder's answer, the spouse signs off to acknowledge the transfer of "qualified " ERISA money into an IRA and in doing so, gives up her legal rights to receive benefits from the qualified plan (Pension, Profit Sharing, 401k or 403b). That is a Federal requirement in order to make the transfer from a Qualified Pension Plan into an IRA. Most likely she will be named as beneficiary when the funds are rolled over into an IRA however there in no requirement to do so.

Posted by: StephenWeinstein on 2010-07-27, 12:07:07

Only if his wife dies first, and then he dies, in that order. No one who is not a beneficiary (except him) has any rights to the life insurance will any beneficiary is alive.