If I am the beneficiary to a life insurance policy, can another family member sue me for the money?

UPDATED: Mar 6, 2012

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If I am the beneficiary to a life insurance policy, can another family member sue me for the money?

I just recently found out I am the beneficiary to my grandfather’s life insurance policy. I have started the paper work to receive the life insurance monies and was notified by another family member that my uncle who was my grandpa’s POA apparently had attempted to change the beneficiary years ago but something went wrong and I remained the beneficiary. Apparently he has hired an attorney to try to get the monies from me. Is there anything that I should be worried about and should I seek counsel regarding this?

Asked on March 6, 2012 under Estate Planning, Ohio


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

Answered 10 years ago | Contributor

I would not hire anyone just yet.  But you may have to if your uncle makes a claim on the money and asks the attorney to file an interpleader action which is an action requesting that the insurance company deposit the funds in to court until the beneficiary issue is straightened out.  Now, it is highly suspect to me when a POA changes a life insurance policy. Right now the money is yours.  Wait and see what happens. They have a lot to prove.  Good luck.

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