Family Settlement Agreement
My mother was killed in a car accident that my step father was driving and he was at fault. He now wants us(3 adult children) to sign a Family Settlement Agreement. It says his insurance company has agreed to pay $25,000 for a full and complete release of claims and another $25,000 as underinsured motorist benefits for the full and complete release of any claims against his insurance company. He then would like us to sign that he would recieve all of this $50,000 leaving us nothing. He says that he can only recieve this money if we sue him and sign this agreement. Is this leagal to do or is this insurance fraud? Would I be suing him for wrongful death and since he is family is this legal?
1 Answer from Attorneys
Re: Family Settlement Agreement
Although the procedure described by your step-father may be technically proper, it is unusual and suspicious to say the least. Generally the proceeds of a death claim go to the heirs at law, but not one who was at fault in causing the death.
You should consult a lawyer as soon as you can. Feel free to call me or Jeff Heinrichs at (800) 962-5363.
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