Our client was the sole primary beneficiary on his ex-wife’s individual life insurance policy. When he learned of his wife’s passing and filed a claim for life insurance benefits, the insurance company informed him that his claim could not be paid because a competing claim for benefits had been filed by the ex-wife’s daughter.
The daughter’s claim was based on the fact that after the divorce the insured created a trust and included her life insurance policy in the trust’s assets. The insured also created a will and designated the trust as the only recipient of her assets, including the life insurance policy on her life. The insured then named her daughter as the trustee. However, the insured never contacted the insurance company requesting a beneficiary change. She never changed the beneficiary.
Before he retained our law firm to represent him in the ensuing interpleader, our client had unsuccessfully attempted to negotiate a settlement with the insured’s daughter for several months. The insurance company gave both parties a chance to agree on a settlement and when a settlement could not be reached, it filed an interpleader (a court action). Our firm took over the case and entered into negotiations with the daughter’s attorneys.
We were proud to have been able to reach a result satisfactory to our client. He received the benefits due to him under the policy and avoided costly and lengthy litigation. Our life insurance attorneys worked diligently to protect our client’s rights to life insurance benefits.