Q: Who is entitled to life insurance policy if children are only beneficiaries but dad was in community property state?
My dad took out a life insurance policy about 10 years before he married his second wife. He passed away recently. Me and my 2 siblings are the only beneficiaries named on the insurance policy, but the will did state we are supposed to each receive cash gift of $100k and the rest of everything he had (including what's left of insurance policy, 401k, property, etc.) goes to his wife.
I know insurance policy trumps the will, but if we collect the entire payout and split it evenly amongst the three of us (this is how the insurance policy is set up) and let his wife have everything else (which is more than twice what any one child is receiving) can and she try to get half of the insurance payout from us because they live in a community property state? If we collect the payout, how does she then get it from us? Does she have to sue?
A: The beneficiary designation on the policy controls, period. If wife not named she gets nothing and will lose if she sues.
A: If the beneficiary designation was done before the marriage the designation may be called into question. You only set out as to when the policy was issued not when the designation was last changed. Good luck. 888-343-4529.
A: Only those listed on the insurance policy are entitled to payout. The entirety of your dad's estate is outside the insurance policy so not a factor in determining insurance payout.
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