My father, who was in a joint ownership of a farm with his brother (my uncle), recently passed away. My uncle had an insurance policy on my father in which he was paying the premiums with the farm's joint checking account. My uncle was named the beneficiary for the imsurance. My father also had insurance on my uncle. But when they decided to sell the animals and equipment, my father canceled his policy on his brother and my uncle continued his policy on my father. The original reasoning for the insurance policies was in case of a partners' death, the remaining partner could use the insuance policy to "buy out" the decedent's portion of the farm. However, my sisters and I do not wish to sell our portion. In fact, we wish to continue the partnership like it was before the death of my father. My question is, are my sisters and I entitled to any of the insurance money that my uncle received?
1 Answer from Attorneys
I am sorry to hear about the passing of your father. It is quite common for partners to have reciprocating insurance policies on each other in the event of the partners death. You are not entitled to the proceeds of the insurance money. If your uncle was listed as the sole beneficiary, he is entitled to the proceeds. Regarding the the continuing of the partnership, that would depend on the provisions of the partnership agreement. This issue is usually addressed in that agreement. Good luck.