Entitlement to proceeds of life assurance policy

O

Omega

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An in-law died recently and there was a life policy payable to her two children. They were the only beneficiaries; the remaining spouse was not included. He is now demanding one third of the proceeds and claims to have received legal advice saying he is entitled to this. Is this correct? I understood that such a policy was outside of the estate and therefore the normal succession rules do not apply. Any advice would be greatly appreciated.
 
To the best of my knowledge, the deceased took out the policy and paid the premiums. Would it have made a difference if the spouse had done so?
 
If the deceased took out the policy on their own life, the proceeds are paid to her estate and divided as per her will. If there is no will, it is as per the Succession Act, which would entitle him to 1/3 of the proceeds.

I think what noproblem is alluding to is life of another. I take out life cover on my wife and pay the premium. As I am the owner of the policy, if she dies, I get paid the full value of the policy and it doesn't have to go through probate, which speeds up the claim process considerably.


Steven
www.bluewaterfp.ie
 
Thank you. The policy was taken out in the name of the two children only, not the husband. The insurance company has issued a cheque payable to both children. Is the remaining spouse automatically entitled to one third?
 
When I took out a life policy many years ago I think it was done 'in trust' for my children at that stage for the very reasons OP has stated, so that ex would have no claim on it if I died. My understanding was it was to go to children and not form part of estate, that was the advice I was given at the time, now thankfully I didn't die within the term so can't confirm if this is what would have happened. I wonder was this original policy the same.
 
Thanks for the reply.
I found this quote on the Revenue website under 'Executors'
"Examples of assets which pass outside the will or intestacy
Death benefits passing under a life insurance policy...where the beneficiaries are particular family members named in the policy or scheme."
This would seem to suggest that the normal succession rule of one third going to the remaining spouse does not apply, as the insurance policy proceeds are outside the estate(?) and therefore belong solely to the named beneficiaries. Any comments?
 
Assuming the policy was done the right way and was set up in favour of the children only then send copy of it or get solicitor if you have one to write to his solicitor with the details. Chances are he just went to solicitor with his query and in general he would have a claim in a straight forward case as the spouse, sending the solicitor the correct info might solve the problem.

Then again he could be just going to kick up a fuss anyway and threatening legals in the hope of them just giving him some to settle the matter.
 
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