Are you in dispute over life insurance policy proceeds? This can sometimes happen in connection with the probate of a loved-one’s estate. Sometimes, it will be a former spouse claiming all or a portion of the life insurance proceeds. This can also apply to 401(k) and IRA accounts. In Texas, there are special laws that can apply to extinguish beneficiary designations if certain events occur (i.e. divorce). One of the primary deciding factors is whether or not the account/policy is an ERISA account/policy. This is a watershed moment in the analysis of the legal issue at hand.
The financial institution usually employs a relatively unknown legal process called Interpleader. This is where the stakeholder (e.g. the life insurance company or brokerage company) sues all parties claiming the financial proceeds in state of federal court; the objective of this process is to make sure they only pay the money once.
The financial institution then deposits the money in the court’s bank account (i.e. “the Registry of the Court”), and then is dismissed from the case, leaving the parties to fight it out on who has a superior right to the policy proceeds.
This can be a terribly frustrating problem to deal with. The Law Office of Troy M. Moore, PLLC has represented numerous Claimants in Interpleader cases just such as described above. Call today or email at email@example.com for your free consultation. Take advantage of the expertise already established at our office.