Policy Owner Dies - No Will

[myinsurebiz]

Situation:

Bob is the insured. His sister was Owner and Beni. Sister passes. She has 2 children - both estranged from Bob - their Uncle. Nobody has seen 1 son for years - no contact info.

Bob tried to find out about policy from Insurance company. They won't talk to Bob since he isn't Owner. Policy is 12 years old and may be paid up.

Only reason Bob now knows about this policy is because the Insurance company has changed names and mailed out the notice of change letter.

Insurance company mailing out forms. The estate of Sister is Owner of policy now I imagine? She had no Will.

Thoughts?

 

[DHK]

Policy owner died intestate.

https://en.wikipedia.org/wiki/Intestacy

State laws govern who gets what property when no will or trust was established. Perhaps there are some probate court documents that can identify who the beneficiary of the estate was, and then show those documents to the insurance company to update ownership.

 

[MGBAgency]

If he's not the owner or bene why does he care? He has no legal right to the cash value or any surrender value. It would go to probate once Bob dies and the Insurance company would have to hunt down the kids.

 

[myinsurebiz]

Policy owner died intestate.

https://en.wikipedia.org/wiki/Intestacy

State laws govern who gets what property when no will or trust was established. Perhaps there are some probate court documents that can identify who the beneficiary of the estate was, and then show those documents to the insurance company to update ownership.

Thanks! Appreciate it . . .

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If he's not the owner or bene why does he care? He has no legal right to the cash value or any surrender value. It would go to probate once Bob dies and the Insurance company would have to hunt down the kids.

Because it's on his life and he doesn't want the piss ant kids to get it. His words - not mine . . .

 

[walthamny]

Just because the policy is on his life does not mean the insurance company has to talk to him. The insurance company will only talk to the owner. If the owner is dead, it is just like DHK said. There are no rights for the insured.

 

[MGBAgency]

Thanks! Appreciate it . . .

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Because it's on his life and he doesn't want the piss ant kids to get it. His words - not mine . . .

He has no choice in the matter. He's not paying the bill or owners of the policy. His kids or estranged kids are the new beneficiaries/owners once he dies assuming they pay for probate.

 

[DecisionMan]

If he's estranged from his sister's kids he can just sit back and let it all play out in probate, not even cooperating with insurance company on whatever paperwork they happen to be sending.

Anyways, as the insured he's still alive so payoff is a non-issue for now. He screws his estranged nieces & nephews as long as he lives so maybe that'll make him feel better.

 

[LostDollar]

would some states put siblings in the line of inheritance when there is no will?

 

[DecisionMan]

Its all State-specific.

Line of inheritance usually is spouse & blood relatives (Prince's estate, for example, includes half-siblings). Distant relatives may be included if no spouse or children. If no blood relatives, the State gets the booty.

So, using Prince as an example, friends and charities get nothing from the estate.

 

[myinsurebiz]

He has no choice in the matter. He's not paying the bill or owners of the policy. His kids or estranged kids are the new beneficiaries/owners once he dies assuming they pay for probate.

True. He was giving Sister money to make payments thinking he was owner.

If he's estranged from his sister's kids he can just sit back and let it all play out in probate, not even cooperating with insurance company on whatever paperwork they happen to be sending.

Anyways, as the insured he's still alive so payoff is a non-issue for now. He screws his estranged nieces & nephews as long as he lives so maybe that'll make him feel better.

Ha - i'll tell him . . .