Is it insurance fraud, that dad’s 2nd wife lied about the size of his estate to obtain control of life polices he owned?

You may file a challenge.

Good luck to you. You should consult with a local attorney to determine your rights and the best remedy for your situation.

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God bless you. I am licensed in Chicago

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Certainly what you have stated is fraud. But why would she do this? Life insurance policies on her life probably do not have much value to her. Perhaps she's trying to avoid estate taxes (which wouldn't be affected by the policies anyway). File your challenge and see what happens.

Ordinarily, life insurance benefits pass outside of the probate estate; so if all but $20K of the estate were life benefits, then she didn't do anything wrong. Is it possible that you are mixing the values of his probate estate with that of his gross estate for estate tax purposes?

What do you mean that the gained control of two life policies he owned on her. If she were the beneficiary of the life policies (rather than his own estate being the beneficiary), then she didn't do anything wrong.

There is really not enough info in your fact pattern to discuss this issue fully. Maybe you can speak with an accountant near you to gain some more insight.

I am a NY attorney practicing just south of Garden City and it appears that you have grounds to file an objection to the Estate and perhaps to her being granted Administratrix status. If you can prove your claim, you may be able to disrupt her being in control of the Estate and replace her with you or one of your siblings.

I suggest you hire an experienced Estate attorney to further investigate and pursue the matter. It sounds like you have a good chance of prevailing.

Good luck.