Legal Question in Wills and Trusts in Pennsylvania
wills and insurance policies
Dad died recently leaving a will indicating his personal
effects to be divided evenly amongst his children of which
there were 3. He also had numerous life insurance policies
which were consistent with this until October 15 when a
change in beneficiary was switched from naming all 3
children as primary to naming the executor as primary, a
second child as contingent, and myself excluded entirely. Particularly troublesome is the fact that the will was constructed after this occured . All of the insurance policies were reassigned in this manner. Are the proceeds for these insurance policies under the jurisdiction of the will and do the proceeds need to be divided evenly? In the event that they are not is there valid grounds for contesting the distributions to the executor as this action is inconsistent with the will. My father was on high dose narcotics for pain and at the time of the beneficiary change was totally dependent on the executor for errands,
Dr. appointments, etc. although he lived alone. The executor denies knowing anything about the change and
insists the money is all theirs! What if anything should or
could be done. There were no witnesses to the beneficiary
changes. Please help!
1 Answer from Attorneys
Re: wills and insurance policies
Your question demonstrates ignorace of some basic terms
used in estate administration. The will names beneficiaries.
The estate (all property and debt of the deceased) is
handled by the executor in the probate process. The executor can
also be a beneficiary. You indicated that the will divides the
estate "personal property" among the three children. This is
ambiguous because most wills make a distinction between "personal
property" (Basically stuff around the house and momentos) and the
"residuary estate" which is the money (or money equivalents) left
over after the administrative expenses of the estate are paid.
This espenses can include funeral, debts, appraisals, attorney
fees, executor fees and estate taxes. If all of the children
in your example inherit the residual estate in equal shares, then
you are in good shape. The insurance policies can name beneficiaries.
They can be to specific persons or to the estate itself. If to the
estate, then the distribution will go according to the will and the
residual estate will simply be larger.
When you say that the insurance policy went to the executor, this too is ambiguous. Was it to the estate and
the executor simply takes possession of the funds on behalf of the estate? Or
do you mean that the person who is the executor was actually named
in an individual capacity to be a beneficiary of the policies? I
suspect that the estate was named so that the testimentary plan
(the terms and conditions of the will) would distribute the insurance
proceeds. This makes a lot of sence because the will is much more
flexable in terms of contingencies. (For example children who do
not survive the testator) (Person who made the will). You should
consult an attorney after gathering as many facts as you can. It
is very likely that nothing at all is wrong. On rare occations it
is sometimes determined that the testator was unduely influenced by
a caretaker during the last stages of life. In general this is very
hard to prove.
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