Life Insurance

[heidbuttsupper]

I wonder if anyone could offer advice....

My DH died in 2018. No life insurance, no estate. After his death, my in laws turned their back on me and I never seen them again. Massive backstory but basically MIL is a nasty piece if work.

Weds this week she got in contact to say that there is in fact a life insurance policy, that she had forgot about. She said she had been paying the premiums since 2014 but it was in DH name. She said this policy was to be shared out between us all. Ok.

Turns out that the insurers need a grant of probate. I do not have this as I didn't need it. On phoning the insurers, it seems MIL tried to claim the life insurance in Feb 2019 but was told she needed probate and as the surviving spouse, it's me that needs to get the probate.

So....I just really don't know what to do. This policy is worth a lot of money, however, my husband killed himself and they may not pay out. I've been in a terrible state since that phone call, its brought up so many feelings. Also, if they do payout, who gets the money? We had no children although my husband did have a child with a previous partner. Also, how was MIL able to put a claim in? She's not the next of kin and didn't pay anything towards funeral costs etc.

For context, we are in Scotland and my DH died when he was 34

Sorry - that was long!

Contact the insurers. Find out from them direct if the claim is accepted and whose policy it was.

I think you might be entitled to the lot by the way.

But the right thing to do would be to ensure his child is provided for.

I’m sorry for your loss quite a lot of info on the link. I’m not sure I would trust her to split any pay out so maybe get something in writing if you do decide to sort the claim for her.

Who receives the payout from a life insurance policy will depend on how the policy was set up. If the policy was arranged with a trust, the beneficiaries are much easier to determine. This would have been arranged around the same time that the policy was started
moneytothemasses.com/quick-savings/insurance-2/life-insurance/life-insurance-payout-rates-explained

It depends on what you know and how able you are to front up MIL. As she's tried to claim and presumably give his next of kin nothing then I might be tempted to:

1. contact the insurance company if you know which one and instruct them that you are the next of kin and ask for a copy of the policy. If your MIL has been paying then they might not share unless it's in his name rather than a policy she has taken out on his life without his participation.
2. If you don't know which insurer then ask her for a copy of the policy so you can see the beneficiary, whether it states she is or sets his estate or something else.
3. If the worst comes to the worst and you can't cut her out then get a legally binding agreement to share it by a solicitor or don't seek the grant of probate. Often but not always insurers will pay out provided the premiums have been paid for a year or two prior to suicide so it doesn;t look like a cynical exercise by the deceased to defraud them. Good luck.

Thanks for all the replies. These are really helpful. I just feel so dazed by it all but really, nothing shocks me when it comes to her.

I have the policy number and the company. I called them this morning and they advised me to get probate. They didn't say anything about me filling in a claim form and that a claim had already been started by MIL in 2019......

I think she has tried to claim this for herself without involving me but realised she can't and now needs me

OP, what worries me is that depending on how the policy is written, she might need you to get probate but you might in some circumstances have no right to the money (Did he or your MIL set this up before you were married and specifically name MIL as a beneficiary for example?). The insurance company must pay in accordance with the policy so their advice to seek probate might not be in your best interests. Ask the insurer for a copy of the policy as you have the details then discuss with a solicitor if you are not absolutely certain that the money will be paid into his estate and/or that you would be the ultimate beneficiary. If she is a named beneficiary then have a solicitor arrange an enforceable agreement to share before seeking probate if you can.

Remember, there is no urgency except to your MIL so take your time if you are finding this upsetting. If the sum is significant and you can afford it, a solicitor might be helpful so you can say to your MIL 'I don't know, why don't you ask my solicitor, MIL'.

Good luck.

It should go without saying how despicable your MIL has acted. I forgot to say I'm sorry for your loss. Things can take more time and be harder to come to terms with after losing a family member to suicide too so it's understandable for you to feel dazed after this was brought up out of the blue.

Needing probate for an insurance claim is odd - usually life insurance is written outside of the estate.

My dh died in 2017 and his life insurances paid out very quickly following notification and provision of the death certificate. I didn't get probate until about 2 years later due to very messy circumstances.

Thank you @Zilla1 that is my concern, I get probate and it pays out to MIL. I can email the insurers tomorrow and list all the questions I have. They weren't very helpful
on the phone today but my head wasn't really in 'life admin' mode. I did ask if there were named beneficiaries and they said no so at least nothing is in MIL name

@Chasingsquirrels yes I thought this too. I never got probate as I didn't need it. DH had no assets so there wasn't any need for it

Thank you @Youdontknowwhatyoureonabout

@finallymightbehappening absolutely, any money (if it gets paid out) would be shared with DHs child

Make no promises to your MIL. If she presses on this, nod and smile and tell her you'll get back to her when it's all settled.

OP, it might be best to ensure you get a copy of the policy if you can rather than rely on any answers to your questions. That way, you'll have confirmation you can discuss with a solicitor if the sum in question is large enough and you reduce the scope for errors.

Good luck.