Legal Question in Wills and Trusts in Kentucky

life insurance policy

My aunt, who suffered from mental illness, whom I took care of for the last 9 years has passed away. She has a surviving brother and sister who she hasn't spoke to in as many years. Apparently, my grandmother had taken life insurance policies out on her before her death in 1995, when her brother and sister (who were also still living at home) sent her to a mental institution to live. In 1997 the home closed and she came to live with me. She was diagnosed with ovarian cancer in 1999 and I have taken care of her through her illness without as much as a phone call from the sibliings. When she passed I called them to let them know, that is when I found out about the life insurance policies, that they are the beneficiarys of. Is there anyway to contest the fact that they are the beneficiarys? Also the life insurance only totals around $10,000 but they made the arrangements for her burial and they are only spending $1200 and are going to pocket $8800. I think it is terrible that they will benefit from her death when I was the one the past few years changing diapers and bedpans etc. when they never cared what she was going through.


Asked on 8/20/07, 7:05 pm

1 Answer from Attorneys
Philip Owens Philip M. Owens, Attorney at Law

Re: life insurance policy

The life insurance policy is a contract between the purchaser, your grandmother and the insurance company. The insurance contract controls the situation and whomever is named beneficiary receives the proceeds. Unfair perhaps, but entirely legal. That is why it is so important to review insurance policies periodically to see about things like this. There are situations where an ex-spouse from a divorce received life insurance proceeds over a new spouse simply because the beneficiary was not changed.

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Answered on 8/20/07, 9:30 pm


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