[WSBAPT] Insurance proceeds - no named beneficiary - messy family fight!

[G. (Gus) Benjamin Lindsey III]

Good afternoon,

 

New one for me. PC's adult child died intestate, leaving behind a minor
child. (Grandchild of PC) The deceased child was believed to not have any
real assets so the family has not opened probate. In fact the main issue has
been over custody of the child. (After the death, the other parent came to
Washington and took the child out of state.) The other state apparently
grants broader custody/visitation rights  to grandparents than Washington
does so the PC and the child's father are litigating custody in the other
state. (Allegedly the father has some substance abuse issues.)

 

The wrinkle is that PC has now learned that the deceased child had some type
of life insurance policy that failed to list an heir. (I have advised PC to
request the actual policy.)

 

The policy is estimated to be worth about 100K. Before contacting me, PC
tried to make a claim directly with the insurance and learned that the
"other parent" is also seeking the money on behalf of decedent's child. (The
father and decedent were never married.)

 

Under intestate law, the minor child would be the heir. As a minor, a
custodian would need to be appointed. PC wants to ensure that the money does
not end up in the hands of the father, believing that he will simply blow
it. Additionally, the PC paid over $15,000 for a funeral and wants
compensation.

 

PC could move to open probate and then file a creditor claim, assuming that
insurance money truly is in the estate. The insurance has indicated that it
is on hold to see if the PC and the father of the child can work it out.
(doubtful, they hate each other)

 

Any ideas/thoughts on the most practical way to address PC's most urgent
concerns: 1) ensuring money truly goes for benefit of the grandchild and 2)
seeking payment for the funeral expenses(which means PC would be a PR with a
creditor claim potentially)

 

I dealt with a situation where a grandparent left insurance proceeds to a
minor and we petitioned to have the parent appointed custodian with the
funds going into a locked investment account until the child reached the age
of maturity. 

 

Trying to figure out the most effective way forward given the family
dynamics. Any thoughts will be appreciated.

 

 

Sincerely,

 

G. (Gus) Benjamin Lindsey III

Attorney-at-Law



 

The Law Office of G. Benjamin Lindsey III

2012 Grade Road, Suite 202

Lake Stevens, WA 98258

Phone:   (425) 263-9585

 

website: www.gbl3law.com <http://www.gbl3law.com/> 

 

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