Beneficiary Question/Dilemna

Chopper

New Member
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Indiana
My sister-in-law passed away and she named "all living children" as her beneficiary. She had 2 living children. Her husband passed away and she remarried. As a result of the second marriage she gained 2 step-children. Upon her passing the 2 step-children listed themselves as children on the staement of living children. The insurance company sent checks to the 2 living children and 2 step-children. The step-children were not blood related or adopted. It is my opinion the step-children were not entitled to any of the death benefit yet the insurance company will not make the 2 living children whole. What is our recourse?
 
YOU have no recourse at all,. This has nothing to do with you. Nor is your opinion of who qualifies binding on the insurance carrier. You may rest assured that the insurance carrier did not blindly accept the "statement of living children" but confirmed their relationship before releasing any funds.

If your sister in law's birth children want to pursue this and don't mind a permanent break with their step-siblings they can address the question with an attorney in their state.
 
My sister-in-law passed away and she named "all living children" as her beneficiary

My condolences upon your loss.

Did the deceased name her beneficiaries via a will, trust, or by naming them orally?

What is our recourse?

Your legal recourse can only be determined by consulting and retaining an attorney. If any recourse exists, its only going to be acquired by taking the matter to court, as in a lawsuit.

Bear in mind, if the alleged interlopers/chiselers are now bereft of their windfall, there might not be any redress.

Most attorneys offer a free, initial consultation and assessment.

Talk to two or three local attorneys next week and see what you can learn.
 
My sister-in-law passed away and she named "all living children" as her beneficiary.

Assuming you quoted that designation exactly as written on the life insurance policy then the natural children have no case.

Your S-I-L should have specified "natural children" or, better, specified them by name.

I do not have any references for life insurance beneficiaries. My opinion is supported by Indiana's Worker's Compensation statute

22-3-3-19(b) As used in this section, the term "child" includes stepchildren, legally adopted children, posthumous children, and acknowledged children born out of wedlock.

Indiana Code 2022 - Indiana General Assembly, 2022ss1 Session
 
My opinion is supported by Indiana's Worker's Compensation statute.

Unfortunately, that definition applies only for the purposes of the workman's comp statute and does not help whatsoever in whether the step kids were entitled to a share of the policy.

What is our recourse?

The natural children should see an attorney who practices in the area of insurance or estates. In order to know who was really entitled to the policy proceeds, it would be necessary to read the entire policy, the specific beneficiary designation, and apply any court decisions in the state that may have dealt with a similar situation. There is not nearly enough information here for anyone to tell you with any good degree of reliability what the outcome would be if they sued the insurance carrier. How much money is involved here? If it's substantial then it's worth seeing the attorney. If it was a small policy, then the litigation costs (if they have a case) may not make it worth their while to pursue it.
 
YOU have no recourse at all,. This has nothing to do with you. Nor is your opinion of who qualifies binding on the insurance carrier. You may rest assured that the insurance carrier did not blindly accept the "statement of living children" but confirmed their relationship before releasing any funds.

If your sister in law's birth children want to pursue this and don't mind a permanent break with their step-siblings they can address the question with an attorney in their state.
I understand there is nothing in it for me. I am just trying to help out my nephews. They asked for the birth certificates of the 2 living living children but did not ask the step-children for theirs.
 
My condolences upon your loss.

Did the deceased name her beneficiaries via a will, trust, or by naming them orally?



Your legal recourse can only be determined by consulting and retaining an attorney. If any recourse exists, its only going to be acquired by taking the matter to court, as in a lawsuit.

Bear in mind, if the alleged interlopers/chiselers are now bereft of their windfall, there might not be any redress.

Most attorneys offer a free, initial consultation and assessment.

Talk to two or three local attorneys next week and see what you can learn.

Thank you.

It was not in her will. Just on the insuranc policy.
 
It was not in her will. Just on the insuranc policy

The insurance company will disburse the funds according to the policy's terms and conditions.

It can't hurt for the beneficiaries to read the policy, or pose their specific questions directly to insurance company's customer service representatives.
 
The insurance company may have asked for other documentation from the other two "living children."

How much was the death benefit? Dollar amount, please.
 
The insurance company may have asked for other documentation from the other two "living children."

How much was the death benefit? Dollar amount, please.
I have talked with the Pru customer service reps and case managers several times about this and asked them the same question you pose. By their own admission the only documentation they requested and received from the step-children was the statement of living children where they listed themselves as children. When I asked them why they didn't request birth certificates on the step-children their response was that since they signed the statement of living children form they were attesting to the fact that it is true to the best of their knowledge. Yet, Pru also told me their definition of children was either by blood or legally adopted. They even told me had they known they were step-children they would not have issued them checks since they were not specifically named as a beneficiary. Their position now is the checks have been dispersed, case closed and they are done with it. The total death benefit was $30,000 which was split 4 ways.
 
I have talked with the Pru customer service reps and case managers several times about this and asked them the same question you pose. By their own admission the only documentation they requested and received from the step-children was the statement of living children where they listed themselves as children. When I asked them why they didn't request birth certificates on the step-children their response was that since they signed the statement of living children form they were attesting to the fact that it is true to the best of their knowledge. Yet, Pru also told me their definition of children was either by blood or legally adopted. They even told me had they known they were step-children they would not have issued them checks since they were not specifically named as a beneficiary. Their position now is the checks have been dispersed, case closed and they are done with it. The total death benefit was $30,000 which was split 4 ways.
I guess you (the two living children) need to figure out if it's worth $15k to pursue this. You will want to consult with an attorney to figure out if the legal fees that may be incurred would justify your attempts. You may be in a position where the insurance company could be ordered to pay your legal fees due to their negligence and possible breach of duties they may owe to the policy holder and/or the beneficiaries.
 
I guess you (the two living children) need to figure out if it's worth $15k to pursue this. You will want to consult with an attorney to figure out if the legal fees that may be incurred would justify your attempts. You may be in a position where the insurance company could be ordered to pay your legal fees due to their negligence and possible breach of duties they may owe to the policy holder and/or the beneficiaries.
Thanks Zigner for your response. That is kind of the position we are finding ourselves in. I have filed a complaint with the Indiana Department of Insurance so am going to see how that plays out before checking into attorney fees. Thanks!
 
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