A friend's younger brother had an accidental death and he named two brothers as beneficiaries in his life insurance policies. Both brothers refused to redeem the policies and have allowed both policies to go into the state of Alabama Unclaimed Funds.
I would like for them to claim the funds and set up a trust in their deceased brother's name and perhaps give scholarships in his name as a lasting legacy.
What other contributions could the money be used for and how do I approach the brothers?
A Hunch2014-04-16T18:39:58Z
Favorite Answer
It's unlikely that the money was turned over to the state. It would probably just sit at the insurance company until it's claimed. If the brothers don't claim it, after they are dead it will pass to their heirs. There is no time limit for claims. The only time life insurance would get turned over to the state is if the insurance company knew the individual was deceased, knew who the beneficiaries were but can't find them.
Maybe after the loss is not so great, the brothers will be able to move forward with other things for the life insurance.
Yep, that's how it works, best answer gets 10 points.
But life insurance is NOT the same thing as "unclaimed funds". There's no dibs, on life insurance. ONLY the named beneficiaries can be paid. If they don't want to be paid, then the money goes to the estate of the deceased.
The money NEVER goes to the state. Bank accounts can get turned over to the state - NOT life insurance.
ANYONE can file a claim.
Whoever controls the money - the beneficiaries - can use it any way they want.
You just go up to the brothers, and tell them that you want to spend the money for them. I don't think you'll have much luck, odds are, they have LOTS AND LOTS of people who want to spend that money for them.