There are situations where the courts will accept a dispute of one’s insurance beneficiary.
Let’s say that you are remarried and have a family with your new spouse. But you failed to update your life insurance policies so that, when you are suddenly and unceremoniously transported to the afterlife, your ex-wife, with who you had no children, remained the beneficiary and your struggling current spouse and children, have nothing.
Another situation where it might be possible to dispute a beneficiary designation is if a policy holder makes a change towards the end of life. If the survivors have reason to believe the decedent was not of sound mind due to illness, medication, or other debilitating factors, a dispute may be entertained by the courts.
In matters of Estate Planning, to avoid future disputes when you are not around to mediate and clarify, it’s critical to be conscious of the decisions you make that may be leave your heirs open for litigation and loss.
Make sure you not only put your wishes in writing, but if there are circumstances that could invite a legal dispute, your family will benefit greatly and not suffer loss through expensive fees or settlements when you outline your intent.
The spirit of your intentions will be untouched by the harsh letter of the law if you just take the time to think through the consequences.
And the bottom line is that, your beneficiary designations can be contested under certain circumstances, but making sure that you shore up any weak spots in your planning means you will most likely avoid very costly processes leaving your family less protected.
Each month, we reserve 10 spots for those who call to make an appointment. Tell us you want the free A Family Estate Planning Session that is normally $750.00, and if you are one of the first 10, your appointment is at no charge. Call 818.905.6088 now!