As indicated in an article I wrote on May 3, 2016 regarding the withholding of death benefits by insurance companies, there have been some new developments. The insurance industry has had a long standing policy of holding death benefits if they were not contacted by the beneficiary. In other words, the burden was placed on the beneficiary to contact the company and make a claim. Many times, beneficiaries are unaware that they have been designated as a death benefit beneficiary. As a result, no claim was ever filed even though insurance companies have contact information related to the beneficiaries in their database. There was an attempt to obtain federal legislation to change the burden of contact to the insurance companies which was strongly opposed by the industry and its lobbyists. Unbelievably, the insurance companies opposed any change in the law which allowed them to use unclaimed benefits as reinvestment funds for their own gains.
Elder Law Issues
Attention all of you Trustees of Living Trusts and children beneficiaries of the Trust- This case is a wake-up call. You know how you might want to punish a step-mother or step-father for becoming a life partner or spouse to your widowed mom or dad. Once the natural parent is out of the picture many times the kids and/or the Trustee exact some type of revenge on the step-parent. Well, you better take a listen to this California case.
The following was written by Attorney Jack E. Stephens, for the professional manual, Rules of Trust Administration in California, regarding the administration of a Living Trust on the death of a Trustor. This is Part 2 of an ongoing series.
The following was written by Attorney Jack E. Stephens, for the professional manual, Rules of Trust Administration in California, regarding the admistration of a Living Trust on the death of a Trustor. This is Part 1 of an ongoing series.