Contesting a benificiary of life insurance

This is the classic example I give to people who either avoid estate planning or engage in "do it yourself" estate planning. Often people think of going to the stationery store or a web site and getting one of those instant will kits. When they come to me, we go over the overall picture. One of the things I do is to advise my clients to go back and look at all of their beneficiary statements and make sure that they revise them to fit their current wishes. I've actually had clients with old, but still good, beneficiary statements that leave money to an ex spouse.

Beneficary statements are a valid and enforceable way to pass money along. The insurance company would be subject to its own liability if it gave the money to anyone other than the parents who are listed on the beneficiary statement.

The only exception to this rule would be if there had been some duress that anyone could prove, or if the friend's husband was under undue influence or not of sound mind when he made out the beneficiary statement. I hasten to add that those exceptions, most likely, do not apply in this case.

Legally, I do not think a challenge to the beneficiary statement will go anywhere. As a practical matter, perhaps the friend's husband's parents will do the right thing and make contributions towards the upbringing of their grandchildren or, depending on the amount of the payout, set up a trust or a college education fund.

This answer is provided for informational purposes only. True legal advice can only be provided in an office consultation by an attorney licensed in your jurisdiction and with experience in the area of law in which your concern lies.

At least talk to a business law attorney about this. Some states provide legal protections to a surviving spouse although it doesn't look good in this particular instance. If this man has any other assets in his estate besides the insurance she needs to get probate opened up and claim the assets for herself. tiekh@yahoo.com Probate Researcher