Legal Question in Wills and Trusts in California
My parents are separated (living in separate houses), I'm 42 and have a 36 y.o. sister. My dad died 2 weeks ago. Long story short.......although I NEVER thought this would happen......money is bringing out the worst in my mom. I just confirmed today with my dads employer that he had been paying into a nice, very low six figure life insurance policy naming my mom and I (not my sister) as primary beneficiaries, mom at 25% and me at 75%. She IS NOT happy about this and I'm afraid our relationship will implode. I'm a single mom of two and out of work for the first time in 15 years and can't even be happy about this possible life changing event my dad made for me. My mom has worked in the law field for 35 years.....specializing in probate and estates which is extremely intimidating because I'm just not as educated as she is in this field. I don't want to take money from my mom. She said by law, my dad was not able to appoint that much money/percentage and that 50% would be the max he could give to me. This just doesn't feel right. Another question.....at what point can I confirm that my 75% dollar figure is correct? I do have a copy of the current policy and his employer's benefits dept did confirm the amount. Do I have to wait to hear from the insurance company once they receive my completed claims paperwork? Do the figures ever change at this stage? I have not seen his will. Could it happen that my 75% sum would go to my mom if his will stated that "money and property" go to my mom?
Also, is there anyway I can get an "emergency" cash advance for a smaller event knowing that I have 6 figures coming to me through his life insurance? My dad helped me financially in 2012 when I lost my job. Now that he's gone, that's cut off and I can't get anything from my mom at the moment because our relationship is so rocky due to this life insurance drama.
Thank you so much to all the attorneys that have answered my past questions. You have helped tremendously. I wish I could afford to hire a local atty to help get me through this current situation, but I have to rely on this free Q & A sites.
Thanks so much.
2 Answers from Attorneys
The life insurance proceeds should be paid out according to the beneficiary designation and are not subject to your father's will. I think what your mom is thinking of is the rule re: IRA accounts that a married person can't name other than spouse as beneficiary of more than 50% of the IRA (because it's community property) without the spouse's consent. I'm not positive, but I don't think that rule apply to life insurance. Go ahead and submit your claim to the 75% asap. It shouldn't take long to get the money once you submit all the paperwork (unless your mother files a conflicting claim or goes to court)
I would respectfully disagree with Ms. Cusack.
Your mother may have a community property interest in the policy. The answer turns on many, many factors, including whether your parents were indeed separated (living in separate houses is not conclusive proof of the intent to end the marriage or be separated under the law), whether this was term insurance or not, and whether your father was insurable after the separation.
It is NOT prudent to go through all these factors in an open forum like this. In a worst case situation, this may get litigated between you and your mother in a form of action known as "interpleader." You should, however, be able to find competent counsel who will help you through this and is willing to wait for much of his or her fees until the life insurance is paid out. I have structured this sort of arrangement with clients on occasion.
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