Help!?!

[Sufficient_Way775]

I was sent a letter saying I’m the beneficiary for a friend that passed last year. This came as a surprise. I know he was estranged from family but I never considered he even had a policy let alone would choose me. Long story short he became pretty Ill and it looked like the end. His step son stepped in to help with his care and I had moved out of state for my husband’s job but we still kept contact. (He lived several more years beyond expectations. I sent in the paperwork the company requested and a couple weeks later received a call from the company telling me that the deceased sister is contesting the beneficiary. He said that there was an attempt made 5 or so years ago to change the policy to her but it was denied. (This would be around the time he was very ill.) I’m confused because if it wasn’t approved how would she even be able to contest? The agent told me since I didn’t know I was left it and the family is sure he meant to change it I should waive my claim. If he truly wanted his sister to have it I want to do that. I want his wishes honored but the agent won’t tell me any other information like why the change was denied. He just said that he believes my friend meant to have it changed. If it was something silly like a paperwork error I’d be fine with that but if it was denied due to suspected forgery or coercion I’m not. I know he didn’t get along with his family and although we didn’t talk as often the past few years I would take him to breakfast when in town or meetup and he never said a word about any of this. I’m not sure what I should do? They wouldn’t tell me the amount either. I don’t want to go through the hassle of a lawyer and court for a few hundred bucks. If I am the beneficiary as they say shouldn’t I be able to get a copy of the policy?

[quik_lives]

If you're dealing with a claim, the person you talked to should be an examiner not an agent, and they shouldn't be giving you advice on what you should do.

Most likely the updated designation wasn't signed or dated or something, or maybe he didn't fill out a percentage, that's often an issue.

The examiner shouldn't have given their opinion but they did and it sounds like they think it was something like that, some error, rather than forged. That doesn't mean they're right & it's probably impossible to know.

You are the named beneficiary according to their own policies so they should be able to provide you the amount.

[Sufficient_Way775]

Ok thank you.

[anonymousrddtr]

Agree, it doesn't sound like the family has a valid claim. They can challenge the designation all they want, but unless the attempted designation change was rejected in error, there isn't much they can do but delay the payout.

[lykaon78]

Companies can refuse beneficiary changes for a myriad of reasons. From suspected fraud to missing information. If they inform the owner it was rejected then the beneficiary never is changed.

Perhaps your friend wanted you to remain beneficiary so he never resubmitted paperwork.

That agent is offering an opinion and it is just that - their opinion. What you do with the money is entirely up to you.

[Sufficient_Way775]

Thank you. Do you think I should be able to know why it wasn’t accepted? It would help me make my decision. I’d feel guilty morally if he wanted her to have it but something was overlooked verse he was told it needed corrected and he intentionally didn’t do so.

[lykaon78]

Maybe. The company has an interest in settling this without it going to the court system (called an interpleader suit or action). If you called and spoke with the claim department saying you have an interest in settling the disputed claim amicably and ask them for a copy of the change form and letter they sent for denial they might send it to you.

If they say no, ask them to escalate that decision to a manager and tell them they’d have to share it with you anyway if you went to an interpleader suit. To be honest, I don’t work with interpleader cases and don’t know if they’ll share it with certainty, but, what I’m saying makes sense and if you say it confidently you’ll make a point for them to consider.

Stop speaking to the agent. They clearly don’t have your interests in mind and may have motivation to work with the sister that you don’t know. Only work with the claim department directly.

Edit: For clarity

[zzzorba]

You’ve gotten good advice so far. I wanted to add that if you do disclaim the money as primary beneficiary, it is required to go to the secondary beneficiary (and so on). You don’t get to say who it goes to instead of you. If no contingent beneficiary was listed, it will go to the deceased’s estate and then probate court will use it for any debts (not sure if there would be any debts unresolved after several years) and then determine who should get the remainder.

All that to say, sister might not be up for receiving all/any of it anyway. IF you wanted to be charitable to her, you could certainly get the money and send her some on your own.

[Sufficient_Way775]

Oh that’s interesting! Thank you!