New York Life Faces Suit Over Record Requests

[Northeast Agent]

[EXTERNAL LINK] - New York Life Faces Suit Over Record Requests | ThinkAdvisor

Herbert Gallin, the owner of a professional engineering firm, died in 2010, and his wife died in 2022.

Fredric Gallin, their son, says in the complaint that he began trying earlier this year to redeem outstanding policies that New York Life and related companies sold to his parents.

Gallin contends that New York Life set conditions that are impossible to fulfill.

“Defendants demanded pension plan documents going back to the 1980s — certified by the corporate secretary, and a corporate resolution,” according to the complaint. “Obviously, as Herbert Gallin has been dead for 13 years, his professional corporation has long since ceased operations.”

 

[DHK]

I wonder what the rationale is for needing those documents to pay out a death benefit?

 

[walthamny]

The company you keep decided to keep the death payout. I wonder since its been 13 years death, why didn't NY Life turn over funds to the State unclaimed fund division.

 

[Allen Trent]

I read that it was a business owned mutual fund possibly part of a pension plan. Mainstay WMC value fund.

Guessing if it was owned by a business & not by individuals, there are documents needed to support who inherited the business assets & any pension documents as to how long any proceeds would pay to the employee or spouse & then what happens to any residual remaining asset.

No idea, but not sure this has anything to do with life insurance or individually owned life insurance. Article from Think Advisor seems pretty light on the details overall

 

[DHK]

Agreed. However, all that should be needed is a completed beneficiary form, regardless of contract ownership. But if that's missing or invalid, then I can see whether it goes to the pension itself, or to the decedent's estate.

Just my hypothetical thoughts.

 

[Allen Trent]

Agreed. However, all that should be needed is a completed beneficiary form, regardless of contract ownership. But if that's missing or invalid, then I can see whether it goes to the pension itself, or to the decedent's estate.

Just my hypothetical thoughts.

Mutual funds dont tend to have beneficiary forms, especially if owned by a business entity.

Too little detail & Wondering if the person jumped quick to sue to get attention to make it go away. I have seen this with parties that have no legal right to an IRA or annuity jumping right to suing like the carrier or custodian following the law, privacy laws are just being difficult.

The plaintiff being the trustee of an irrevocable trust has no bearing on the account if the account wasnt owned by that trust and a defunct business owned the financial product.

Weird all around