General life question

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SoonerP226

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Did the person buying the insurance policy specify that beneficiary or was the insurance paid to someone else? If the named beneficiary got the money you're SOL. You can challenge anything if you can afford the lawyers fees, but winning is harder if the person paid is the named beneficiary.
This is my understanding. The insurance payout isn’t a part of the deceased’s estate, it’s a contract between the deceased and the insurance company, and if there’s anything the insurance company lawyers can do, it’s write contracts.
 

bushmaster06

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A lot of males still cant grasp what goes into keeping a home straight. Since my layoff and the wife teaching, Ive taken over a lot of the house duties for her. lol not that I didnt do some before, but working my 10-12 hours a day i had to pace myself. But like you said the beaver days are over. most homes have two working parents and I hope most if all have shared duties at the house. It’s just the world we live in now.
I’m in the same boat as you. I got laid off at a critical time where my wife was suppose to stay home and I was going to work, but we had to switch that. So now I’m the stay at home parent and keep up with the household and get all of the foster kids to their many appointments, caseworker visits, etc. I know my wife appreciates it, but little kids are naturally selfish so they get frequent reminders that both of us work hard to provide for them. It takes a lot run a household of 10.
 

-Pjackso

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This is my understanding. The insurance payout isn’t a part of the deceased’s estate, it’s a contract between the deceased and the insurance company, ....

Good points about the distinction between the 'estate' and the 'contract'. I think you're right about this.

Obviously, this is in regards to the OP.
 

Cat City Slim

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Legal question: If upon someone's death, life insurance is paid to someone outside immediate family, can the family sue for incorrect dispersement?

For example: A 'Will' can be legally challenged even after death, and proceeds could be amended in a way the deceased did not want.
This happens often, and hence why a 'Trust' is a significantly stronger estate tool.

Of course, 'Wills' and 'Life insurance' are completely different tools.

So the question is: Can life-insurance beneficiary proceeds be legally challenged?
Any contract can be challenged. It is unlikely that a beneficiary change will be invalidated. The party challenging will probably have to prove that the change was a result of undue influence, which is difficult to do.
 

turkeyrun

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Just a thought, why don’t you just cancel or cash in the life insurance policies? You might as well enjoy the $$ yourself instead of leaving it for others.

IF it was just me, definitely would. Being Wif and me, insurance stays intact for now.

IF she passes first, cash out and hit the road.
IF I go first, she has $$$, sells off what we have left and lives on cruise ship to the point of no longer able, then nursing home for remainder.

Either way, we don't plan on leaving much.
 

dennishoddy

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We just did a revocable trust for our estate planning last month. Well worth it.
Of course there are going to be differing opinion among lawyers, but we are in the process of MIL's trust.
In it she stated the land was to be distributed to XXX and ZZZ and SSS and the balance to be distributed to CCC.
Our lawyer that is well known with his association and relationship with a huge landowner in Oklahoma said that trust dissolved with her death.
My wife said she wanted to abide by her mother's wishes, so it will proceed as she wished.
In the trust she stated that the property to XXX and ZZZ and SSS would stay in the family forever which turned out to not be correct.
If her wishes had been correct within the trust, there would have been over a dozen heirs in the next generation and probably 3X that in the generation that followed.
The land would have been so convoluted that it could have never been sold.
Example: I used to pay for a hunting lease with an Osage Indian tribal member. She was in her 70's.
When she passed away, there were 8 heirs. Half wanted an immediate sale and the other half wanted to keep the land, cattle leases and hunting leases for a little mail box money.
That was 20 years ago and they are still fighting.
Granted that is on Osage Indian land which may have caused the issue.
If I remember correctly, the BIA got involved in these lands that had dozens of owners and did something to alleviate that. That land that we leased still hasn't been resolved as of last year.
 

dennishoddy

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IF it was just me, definitely would. Being Wif and me, insurance stays intact for now.

IF she passes first, cash out and hit the road.
IF I go first, she has $$$, sells off what we have left and lives on cruise ship to the point of no longer able, then nursing home for remainder.

Either way, we don't plan on leaving much.
In our case, we have investment accounts set up so that if one croaks first, the remaining spouse in the plan gets the same amount of income as if the deceased spouse was still alive until both pass away. At that time the last will and testament comes into play for any funds left in the account.
There will be a nice payout for the heirs.
 

Shoot Summ

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Does your wife and children appreciate the sacrifices that you have made for their betterment? The last couple of years I have made some changes to my life insurance policies that will drastically benefit one person, and not my immediate family.
Sounds like there is much more to this story, you seem to be carrying some resentment. Being punitive after death is a crappy thing to do. If you made the change, let them know, if they ask why, tell them.

Or you can just hide it, dodge difficult conversations, and hope that you finally got some respect from them after the fact for taking one last punch from the grave. I can assure you though, that you will just forge a lifetime of resentment from them if you do that.
 

Shadowrider

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Did the person buying the insurance policy specify that beneficiary or was the insurance paid to someone else? If the named beneficiary got the money you're SOL. You can challenge anything if you can afford the lawyers fees, but winning is harder if the person paid is the named beneficiary.

This is my understanding. The insurance payout isn’t a part of the deceased’s estate, it’s a contract between the deceased and the insurance company, and if there’s anything the insurance company lawyers can do, it’s write contracts.

I see life insurance policies, loans, notes, etc. listed as assets on estates that were probated all the time. :scratch:
 

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