Question
What is the name of your state? Wisconsin
Here is my question/scenario:
My father-in-law, who was terminally ill, took out a life insurance policy at least a year ago naming his brother as the beneficiary. He married three weeks before his death, but the policy beneficiary was not changed to his spouse. Since he had been married only three weeks before his death, his spouse paid nothing towards the policy. Will the policy proceeds go to his brother, the beneficiary, or will they default to his widow because life insurance policy proceeds are considered a marital asset in the state of Wisconsin?
Any assistance would be appreciated.
Thank you!
Answer
I am sure someone will correct me if i am wrong, but I believe the value of a life insurance policy may be considered a marital asset, however, not the proceeds paid out from a life insurance polcicy. The proceeds will go to the beneficiary.
Answer
Yep - the life ins. proceeds will go to the beneficiary named in the policy - the brother. (unless the ins. co. contests paying the proceeds to anyone if it is within the contestable period - sounds like it might be - usually two yrs. -- sometimes one or three yrs.) Was he terminally ill when he took out the policy - I'm surprised it got approved. . . .unless it was a pol. you could apply for over the internet or through the mail with no medical questions asked --- then they usually do not pay if death within first couple of yrs. for example & just sometimes give a return of prems. paid.
Answer
Additionally, any potential claim of the policy having become marital property would be ineffective, because the policy was a premarital asset, and it's unlikely any payments were made at all during the term of the marriage - so she can't even claim that marital income payed the premiums..