Life Insurance Help

[alc2285]

My brother inlaw is dyeing of cancer and he has a 2 year old daughter with my sister. Instead of makeing it to where his life insurance goes to her and their daughter he made it to where it all goes to his father. His father is also the one in charge of his will. I was woundering if there is anything my sister could do to have that changed? I think it is sick that he would leave his own wife who hasn't work for 5 months so far to take care of him no money to raise their daughter. They have a great relationship. He just said he wants to make it easier on her. What a line of BS! RIGHT!

[dzug]

Are you complaining about where the money is going or about who is in charge of the will?

The latter you can do nothing about. Indeed it does make it easier as is claimed.

The former you can. When your BiL dies your SiL has to make application to the courts for reasonable provision from the estate on the grounds that she (and the child) were dependent of your BiL. She won't necessarily get it all, but probably a large part of it.

[alc2285]

In a way yes but its not so much as the money but the fact that he changed the life insurance from her to his father. Also that he thinks his parents will make sure she will get her part but we don't think she will because they have never really liked her. They are selfish. It hurts her more just knowing that he is not thinking of their well being after he is gone.

[dzug]

Looks like the beginning of a difficult situation then - sounds as though your BiL is not thinking straight or has a better view of his parents than you do.

The law is on your SiL's side, but enforcing her rights may be a trial.

[themas]

Many life insurance policies are written in trust for named benficiaries so that the money can be paid out soon after death without waiting for probate - in other words, the money is not part of the estate to be disposed of under the will. If your BiL's policy is like this then in effect the money is going to his father without any strings attached. Whether your sister could then claim provision from it (in the same way as she could from the will if that does not provide for her properly) I am not sure.

You say "he thinks his parents will make sure she will get her part" which implies that she should not have all of it. Without knowing the family financial circumstances it is difficult to comment on this, but if he wants the money split there is nothing stopping him getting more than one beneficiary named and specifying the % each is to have.

There can be at least 3 reasons for what he has done:

1. His illness has affected his mind & he is not thinking straight.

2. He has been unduly influenced by his parents.

3. He genuinely thinks his wife would be unable to cope with having the money - eg she has no experience of handling sizeable sums, or she tends to be spendthrift (You will know whether there is anything in this).

Whichever it is, if your sister is going to need the money to maintain the lifestyle of herself and daughter it could be worthwhile making efforts to get him to change his mind, or at least to sign a document (with independent witnesses) specifying the use - for your sister's benefit - that he wanted the money to be put to.

[alc2285]

Thanks themas and dzug. I'm sure that what you have both told me will help know that I understand it more. Our mother is also trying to help her figure things out. We all (my sister, mother) think that its all three of the reasons you said. But thanks alot. :)