My parents divorced twenty years ago after 35 years of marriage. Both remarried. My dad recently passed, and my mom is the named beneficiary on a 20 year term life insurance policy on my dad that was paid in full in 1971 by my grandfather. Illinois adopted “automatic revocation” in 2019, but several lawyers I spoke with said the law isn’t clear as to if it pertains to divorces in the past or those forward of 2019. They seem to think that no judge would challenge a beneficiary that was named 50+ years ago. The insurance company is asking my mom to submit the death certificate (which we have) and the claim paperwork, but my mom doesn’t want to pursue this if she won’t remain the beneficiary. If the insurance company decides my mom should no longer be the beneficiary, would she be notified? Would it then go to the estate/ surviving current spouse? Would my mom need to release it to the new wife? Any insight on this would be much appreciated.
Automatic Revocation in IL
- Thread starter Whizzo
- Start date
Didn't the policy lapse in 1991?
- 2,263
IF it hasn't lapsed almost 30 years past the 20 year end of term, IF Dad made any changes there is not much Mom can do. The carrier is obligated to fulfill the terms of the contract (pay named beneficiary). I think you will find out that this policy has expired.
- Thread starter
- #4
The insurance company contacted my mom to begin the claim procedure, so I’m assuming the policy is valid (?) My question is regarding the named beneficiary, my mom, and whether she is entitled to the money or will it go to dad’s new wife/ estate due to “automatic revocation” that came into law in IL in 2019.
Also, what type of lawyer could answer this? I’ve talked to two probate lawyers who didn’t know the law changed and think my mom would still get the money.
Also, what type of lawyer could answer this? I’ve talked to two probate lawyers who didn’t know the law changed and think my mom would still get the money.
- 4,575
This actually isn't true in many states in divorce situations. Yes, the carrier will have to pay out a claim, but in many states if no updated beneficiary form was completed after divorce, the carrier will have to pay it to the probate estate where creditors get to the front of the line before the judge pays according to will or intestate laws.
This is because many states divorce laws state that the spouses have no legal right to own or be the beneficiary of life, annuity, investment, etc if they were not specifically identified in the divorce decree. Essentially, unless you fill out a new beneficiary form & list your ex spouse to receive it or unless the divorce decree clearly calls it out, the laws say you have no legal standing to receive. the carrier in some cases cannot even pay the contingent beneficiary listed as some state laws make the outdated beneficiary designation from prior to divorce null & void as if none is on file. Makes no sense to me. I think the ex spouse should be treated as deceased & the contingent paid rather than it going through probate
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- 4,575
My money is on the claim having to go to probate in your dad's estate unless you can show the divorce decree permitted your mother to remain the bene after divorce or your dad filled out a new form after divorce & named your mother specially as his ex spouse. The carrier will know & follow the state laws of residence. They will have to pay the claim & they have no care where it goes. they will only want to pay the proper legal way so they don't get stuck paying it twice. If they pay your mom & she had no legal standing, a creditor or bene of your dad's estate could sue the carrier & they could have to pay the claim a second time.
I am sorry for your loss
- Thread starter
- #8
- 4,575
Most states now force claims to be paid quickly & if a known beneficiary is not filing paperwork or proceeding quickly, they have to pay it to the States unclaimed funds. I believe it is under the Escheats laws & regulations. In cases where they know of a death it can be as quickly as just a short window of 3-6 months I believe
- Thread starter
- #10
If Illinois follows automatic revocation (adopted in 2019), I thought I read that it would, in turn, go to my dad’s estate (which in essence is my stepmother). If she’s named on the death certificate, won’t the insurance company contact her? Or will she not be made aware that this policy exists? These are the questions we have, as my mom doesn’t want to proceed if the money will just end up with my stepmother.
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