Client Testimonials

"My family was referred to Michael Young by an attorney friend in Austin. My elderly mother was involved in a federal court lawsuit involving over a million dollars of life insurance proceeds through an ERISA plan.  Michael filed a motion to dismiss the case and the other side responded by agreeing to a settlement very favorable to my mother. My family was pleased by Michael's aggressive representation and his prompt responses to our questions. I would recommend Michael and the firm of Sanders, O'Hanlon & Motley to anyone involved in a dispute regarding life insurance benefits or the distribution of an estate." Rafael S., Hunt County.

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"Michael took careful measurement of our case, asked the right questions, and respected the sensitivity of the situation.  At the end of the day, this is the type of person you want working on your side. He also worked outside of normal business hours to accommodate our busy work schedules. Despite such a stressful and frankly sad time, J. Michael Young was a strong source of support, and helped us figure out the right course of action."  -Shaun,  Travis County.

Disputes Over the Rightful Beneficiary of Life Insurance Proceeds

Under Texas law, life insurance is considered a non-testamentary or non-probate asset.  The life insurance policy is a contract between the purchaser and the insurance company, for the benefit of a third party.  Therefore, the contract generally determines who receives the policy proceeds.

Typically, the owner of the policy names a beneficiary and that person or entity receives the proceeds upon the insured's death.  However, sometimes there are exceptions or the answer is not so clear. Sometimes, there are multiple claims made to the policy proceeds.  Often, a policy holder will get divorced, but forget to change the policy designation from the prior spouse. In disputed cases, the insurance company will typically seek a ruling from a court to determine the rightful beneficiary.

Sometimes it can be proven that the benefits were promised or pledged to someone other than the named beneficiary.  Other times, the named beneficiary may have done something to prevent their recovery of the policy proceeds.

Beneficiary disputes can be complex.  A key issue to determine is whether Texas or federal law applies to the controversy. Most policies are purchased by individuals through an agent, but many are purchased through an employer with group coverage.  Federal law, through ERISA, will often apply if the policy was purchased through an employer.  In such cases, you need an attorney experienced in handling ERISA cases.

 

 

 Consultations are free and confidential.