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Life insurance and 401k plan beneficiary?
I live in Massachusetts and I my father just passed away. On my fathers life insurance and 401k plan he has his sister as the sole beneficiary on everything. He told me last year when he was dying that he has her on everything because she is older and that it should all be shared between her my brother and I and her sister. (40%, me, 35%, my brother and 25% his sisters.) I am the beneficiary of his will thats it. His life insurance and 401k plan is over $200,000 total. Is she intitled to everything of his 401 and life? And is it up to her to do what she wants with it? If so can I take her to court to fight for my brother and I to get anything of that? Also in the will it says my brother and I are entitled to " tangible personal property" which excludes money? What do I do in this case? We are his next of kin but seems like were entitled to nothing.
Ok BUT I only ask because my dad specifically said last year he put her on there because she was older but that we were entitiled to it as well. So how do I go about that? My dad said himself that we are entitled to his share as well in his 401k plan and he even told me the percentage so what do I do in that case?
7 Answers
- Anonymous1 decade agoFavorite Answer
oh this is where brother and sisters become rivalries eh? Only thing you can do is ask nicely or battle it in court.
Source(s): Life insurance with cash value don't pay out cash value when you die! They say its a good way to build savings! How is that so if you lose it all and it doesn't go to anyone when you die? People say you can borrow it. Why do I want to borrow my own money that I paid for? Cash value = scams! - ricksLv 51 decade ago
Firstly, I am sorry for your loss.
If she is the sole beneficiary, then that is what she is. You are not able to force her to split it with you. You may be able to let her know your fathers wishes were, but she is not legaly obligated to anything. She could just accuse you of 'sour grapes'. That is the good and the bad things about naming beneficiaries- that is what goes, regardless. As someone else said, the only thing would be if he had a surviving spouse, she would be entitled to the 401k, unless she signed away her rights to it.
- AnonymousLv 71 decade ago
Yes, if she's the sole written beneficiary, then she's entitled to everything, and it is up to her to do what she wants with it.
The ONLY exception, depending on your state laws, is if he has a surviving spouse - in some states, the manadatory beneficiary of any retirement plan is the spouse.
Yes, tangible personal property is stuff that takes up space, not cash.
What to do . . honor your father's wishes. Be graceful - you didn't get any cash, that's just the way it is.
Source(s): agent, 21+ years - 1 decade ago
You should have had this discussion when he told you about the situation. At that point, there still would have been time for him to change things.
As it stands now, unless he specified these wishes of which you spoke, in his will, you don't have a lot of recourse. You might try talking to his sister, since he may very well have had the same discussion with her that he had with you. And it may not become an issue at all.
However, it's unfortunate that people have so little understanding about how these things work. It can create such friction between family members at the very worst possible time!
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- 1 decade ago
Sorry Bro, that 401k and life insurance is hers. IRAs and insurance transfer by contract not by will. You are screwed. Not being a legal expert I dont know if you have a case in court. He needed to change those beneficiaries before death to make an equitable split of assets. Again I am no legal expert--I am a wealth management consultant--my clients benes are updated twice a year. Call an attorney and ask. I hope it works in your favor.
- Anonymous1 decade ago
As the sole beneficiary, your sister is free to do as she pleases with the insurance proceeds and the 401k assets.
If he discussed his preferences with your sister, she may honor them, but is under no legal obligation that you can enforce.
Tangible personal property generally extends to physical things, excludes securities and cash, and usually excluded real estate which is separately dealt with (thats "real property").
What happens to your fathers property is determined by the way he left them when he passed away.
Good luck.
- 1 decade ago
unfortunately unless you can provide written proof that is what he intended you are out of luck and dependent upon his sister's reasonableness.
