Is it a criminal offense for my sister to have changed the beneficiary on a life insurance policy by having my mentally incompetent mother sign a form?

My mother recently died of Alzeheimers. My sister changed the life ins. policy to her son as beneficiary. That policy was to pay for the funeral. Now she says the money is her sons and he can do whatever he wants with it and we can pay for the funeral.

Asked on May 22, 2012 under Estate Planning, Wisconsin

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I am so sorry for your loss and for the situation.  It sounds as if your sister "unduly influenced" your Mother and that your mother was not legally competant to change the policy at the time that she did.  So what you need to do is to seek legal help in wiritng a letter to the insurance company challenging the new designation of beneficiary form and asking the insurance company to interplead the funds in to court. Good luck.  


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