Prior to 04.24.2013, my friend's and his wife's beneficiary designation forms
were as follows.
My Friend
Primary Beneficiary: His Wife
Contingent Beneficiary: None
His Wife
Primary Beneficiary: My Friend
Contingent Beneficiary: None
They realized that if something were to happen to both of them at the same time that they didn't have a designation listed for that type of event.
They both agreed to make both of the girls, his step-daughters, 50/50 recipients of both of their policies. This would have paid each over 100K if they both were to die.
They both indicated the same designation when making these changes
and thought these changes were going to be in addition to the original
designations made.
The changes made were as follows.
My Friend
Primary Beneficiary: Both Daughters/Step-Daughters
Contingent Beneficiary: None
His Wife
Primary Beneficiary: Both Daughters/Step-Daughters
Contingent Beneficiary: None
These changes were not made in addition to the original designations,
they replaced the original designations.
If my friend were to die, his wife would not have received the benefit and if
his wife died, my friend would not receive the benefit. This is obviously not
what they intended.
Their intentions were as follows.
My Friend
Primary Beneficiary: His Wife
Contingent Beneficiary: Both Daughters/Step-Daughters
His Wife
Primary Beneficiary: My Friend
Contingent Beneficiary: Both Daughters/Step-Daughters
His wife just recently died, so my friend called the insurance company to inquire about the funds to pay off his 100K home balance, burial expenses, medical bills, and car loan.
He was told that he was not the beneficiary and that they could not tell him who was.
Going through his lock box, we found a letter that he had received from the insurance company indicating the changes. He was in shock when the mistake was explained to him.
The step-daughters, who have financials issues have decided not to do the right thing by turning over the funds to him.
He is in his mid fifties and now owes over 120K on a single income. Sad story!
were as follows.
My Friend
Primary Beneficiary: His Wife
Contingent Beneficiary: None
His Wife
Primary Beneficiary: My Friend
Contingent Beneficiary: None
They realized that if something were to happen to both of them at the same time that they didn't have a designation listed for that type of event.
They both agreed to make both of the girls, his step-daughters, 50/50 recipients of both of their policies. This would have paid each over 100K if they both were to die.
They both indicated the same designation when making these changes
and thought these changes were going to be in addition to the original
designations made.
The changes made were as follows.
My Friend
Primary Beneficiary: Both Daughters/Step-Daughters
Contingent Beneficiary: None
His Wife
Primary Beneficiary: Both Daughters/Step-Daughters
Contingent Beneficiary: None
These changes were not made in addition to the original designations,
they replaced the original designations.
If my friend were to die, his wife would not have received the benefit and if
his wife died, my friend would not receive the benefit. This is obviously not
what they intended.
Their intentions were as follows.
My Friend
Primary Beneficiary: His Wife
Contingent Beneficiary: Both Daughters/Step-Daughters
His Wife
Primary Beneficiary: My Friend
Contingent Beneficiary: Both Daughters/Step-Daughters
His wife just recently died, so my friend called the insurance company to inquire about the funds to pay off his 100K home balance, burial expenses, medical bills, and car loan.
He was told that he was not the beneficiary and that they could not tell him who was.
Going through his lock box, we found a letter that he had received from the insurance company indicating the changes. He was in shock when the mistake was explained to him.
The step-daughters, who have financials issues have decided not to do the right thing by turning over the funds to him.
He is in his mid fifties and now owes over 120K on a single income. Sad story!