Question
I am in a unique situation. My father died recently, leaving myself and my two brothers as beneficiaries to a life insurance policy. One of my brothers refuses to sign a claim, because for whatever reason he doesn't want the money. My other brother and myself both feel that we would like to claim the money. What are our legal rights in this matter? Is there any way the first brother could pass his portion of the money on to our mother, and would there be tax ramifications? This is taking place in New York state. Thank you for any advice you can offer.
-julio33
Answer
He can assign his rights to your mother and then she can file. USUALLY all beneficiaries need not file. If you and your brother who wants the money file your own beneficiary forms, the company will pay you your shares. As for your brother who feels guilty, taking his share isn't going to impact the fact that your father is, still, dead, whether or not he files the claim. This way the state evetually gets the money, under escheat laws, from the insurance company.
There probably are no tax issues worth worrying about unless the proceeds are huge, and then there may or may not be gift tax implications.