Legal Question in Wills and Trusts in Texas

sisters are on life policy,one is deceased, is it a lapse gift?

Grandma died in Jan 2006. Her daughters are to share a life policy of 10,000. My Aunt living,& My mother (died-2000) and my Aunt is left with a policy that had two daughters names on it.

My Grandmother had listed in her Trust, that the Only specific gift for my mother was 5000.00, if she predeceased her, then it would be a lapse gift. Is the life policy, with my Mothers name as beneficary the ''gift'', or is the gift to come from the residuary estate? (That my Mother was intentionally not mentioned in) My aunt, requested my Mom's death certificate, and ss#, Would this check, only be issued to two names, if Grandma never changed the beneficiaries. Does the insurance co. have the authority to say it is all my aunts now, because the second beneficiary is deceased. Doesn't the deceased beneficary ''issue'' take in to consideration?

Or would the 5000.00 be put into the residuary estate.

Or if I gave my Aunt all my Mothers info my mothers' issue side or the estate is SOL

Thank you


Asked on 3/12/06, 4:11 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: sisters are on life policy,one is deceased, is it a lapse gift?

I have absolutely no idea how or where the Trust comes into play. Insofar as the insurance policy is concerned, your aunt gets her $5,000.00 and your mother's $5,000.00 goes into your grandmother's estate.

If the estate was to pay your mother $5,000.00, under Texas law that lapsed gift would go to your mother's heirs at law rather than the residuary estate.

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Answered on 3/12/06, 9:23 pm


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