My Mother made me the beneficiary of her life insurance but not my sister. No one knew this until she passed away,
I worked in the family business for years with my mother. My sister didn't work in the business but will receive an equal share of the estate worth millions but not the life insurance. Maybe this was Mom's way of giving a little extra for all my time and effort for 30 years but don't know that for sure.
My sister doesn't agree and has contested the policy and wants the beneficiary changed to both of us. The Life Insurance Company said that they MAY send it to an interpleader if the issue isn't resolved by us.
I don't understand what the issue is? I'm clearly named beneficiary by name and Mom was a very competent person, so that isn't an issue.
You have not asked a question but basically answered it anyway. If you are the sole named beneficiary, then you are the sole named beneficiary. We cannot answer why your sister would contest that but eventually the proceed from the policy will be disbursed. Hopefully an estate has been opened and a skilled lawyer retained to handle the matter.
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The beneficiary who has been duly named by a person of competency should and will remain the beneficiary.
The insurance company wants to protect itself if there are any reasons alleged to disqualify you as a benificiary. It deposits the money with the court and lets the court decide any contested issues. If you are the properly named beneficiary, you'll receive the funds.
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Interpleader simply means that there will be a court case filed, you and your sister can present your case and the court will decide. If you are correct, you will ultimately receive the proceeds.
Did your sister give some sort of a basis for contesting? You or your attorney might argue that she should not be permitted to force to interpleader if her only stated grounds for contesting are that she doesn't like it and doesn't think it's fair. If she is claiming that the designation was forged, or your mother lacked capacity, or that you unduly influenced her, then those are at least potentially legitimate grounds.
You might benefit from having an attorney to communicate with the life insurance company.
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