When two or more people claim the same life insurance benefit, the insurer often stops paying and asks a court to decide. These disputes can involve former spouses, children, new partners, and even allegations about forged or pressured changes.
Common beneficiary disputes
An ex-spouse is still named on the policy.
A late beneficiary change that family members say is invalid.
Claims that the insured lacked capacity or was unduly influenced.
Policies with unclear or outdated designations.
Divorce and beneficiary designations
Texas has a statute providing that a divorce generally revokes a designation of the former spouse as beneficiary of a life insurance policy, with certain exceptions and some limits on how an insurer who pays in good faith is treated. The details and the type of plan, such as an employer plan governed by federal law, can change the outcome.
What an interpleader is
In an interpleader, the insurer deposits the money with the court and asks the court to decide who is entitled to it. If you are named in one, you must respond by the deadline in the citation, and a missed deadline can cost you your claim.
What to gather
The policy, every beneficiary change form, divorce decrees, wills, and communications about the policy are often key pieces of evidence.
Beneficiary fights can move quickly once a lawsuit is filed. Knowing what the insurer's records show, and what the law says about those records, helps you decide your next step.
Davila Cobos Law Firm, PLLC represents clients in San Antonio and Laredo. Learn more about our life insurance beneficiary dispute attorney services, or contact the firm to discuss your situation.
This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Every situation is different, so talk to a Texas attorney about yours.
