Can you contest a beneficiary on a life insurance policy?
Asked by: Hilton Kulas III | Last update: January 9, 2026Score: 4.1/5 (56 votes)
Can a beneficiary designation be contested?
In order to challenge a beneficiary designation, the claimant must be able to prove that the designation does not accurately reflect the decedent's wishes.
Can you contest a life insurance policy for beneficiaries?
If you have a valid case and strong legal support, you may be able to prove that the beneficiary listed on the policy doesn't accurately reflect the policyholder's wishes when they passed away. Note that regardless of the outcome, the life insurance company will distribute the funds based on the court's orders.
What can override a life insurance beneficiary?
A will cannot override a beneficiary designation because the policy is a contract between the person who purchases it and the issuer. The only way anyone can override a beneficiary other than the policyholder is if a court determines there's a conflict between named beneficiaries and state laws.
Can you change a life insurance beneficiary after death?
Choosing who will receive your assets or the payout (called a “death benefit”) from your life insurance policies is a decision you should consider carefully, because a beneficiary designation can't be changed or corrected after you're gone.
How to Contest a Life Insurance Beneficiary
What happens when a life insurance policy is contested?
This is called the contestability period. During the period of contestability, the life insurance company can be exempt from paying out the death benefitDeath benefitThe amount of money the life insurance company will pay your beneficiaries when you die if it finds intentional misrepresentations in your application.
Can beneficiaries be changed after death?
Although the general rule is that beneficiaries cannot be changed after the insured's death, there are a few limited scenarios where exceptions may apply. One such scenario involves contingent beneficiaries.
Can a beneficiary sue another beneficiary?
Estate beneficiaries who do bring an action against another beneficiary, heir, personal representative or third party can seek to have the alleged offender pay for the property or return it, and potentially seek punitive damages if the harm to property was substantial.
Who has the authority to change the beneficiary?
The legal authority to modify revocable beneficiaries typically rests with the grantor or settlor of the trust. The grantor can add or remove beneficiaries, change the distribution percentages, or modify any other provisions related to the beneficiaries.
Which of the following types of beneficiary Cannot be changed?
An irrevocable beneficiary is a person or entity who is designated to receive the assets in your life insurance policy and cannot easily be changed or removed unless they consent.
Who can override a beneficiary?
An executor can override a beneficiary if they need to do so to follow the terms of the will or the probate laws of the state in which they are administering the estate. Executors are legally required to distribute estate assets according to what the will says and follow state probate laws.
How do you deal with an uncooperative beneficiary?
Often in circumstances where there are missing or uncooperative beneficiaries, the most appropriate course of action will be to apply to court for an order that the trust fund is paid to court or to some other relevant party (such as another beneficiary of the trust).
Do life insurance companies contact beneficiaries?
If a policy is found and you are the beneficiary, the life insurance or annuity company will contact you directly. If no policy is found or you are not the beneficiary, you will not be contacted.
What happens when beneficiaries disagree?
When beneficiaries disagree, it can drastically slow the distribution process. In some cases, severe disagreements may even lead to arbitration and estate litigation.
What are the rules for beneficiaries of life insurance?
A life insurance beneficiary is legally designated to receive a death benefit after the policyholder passes away. The beneficiary will receive the death benefit as long as all the prerequisites of the policy are met and the policyholder is up-to-date on their premiums.
Can a spouse contest life insurance beneficiary?
As we mentioned previously, the terms of the policy, as well as whether the policy is governed by state or federal laws, can play a role in whether a surviving spouse is entitled to contest a life insurance beneficiary on the basis of community property rights.
Can a beneficiary be overturned?
Any beneficiary designation can be contested, but the person contesting has to have standing and there has to be a valid reason for the dispute.
Can an executor hide money from a beneficiary?
However, an executor cannot withhold money simply at their own discretion or for personal reasons. Executors have a fiduciary duty to act in the best interests of the estate and its beneficiaries, so any withholding must be justifiable and transparent.
Who is the only one who can change the beneficiary on a life policy?
As the policyholder, only you — or someone who holds durable power of attorney for you — can change your life insurance beneficiaries. However, if your policy names an irrevocable beneficiary, you will also need to get that beneficiary's consent before making changes.
Who has more right, a trustee or the beneficiary?
And although a beneficiary generally has very little control over the trust's management, they are entitled to receive what the trust allocates to them. In general, a trustee has extensive powers when it comes to overseeing the trust.
Can someone remove you as a beneficiary?
Beneficiary Designations And Disinheritances
If your goal is to remove someone as a beneficiary, then you have two options. First, you can redistribute the inheritance among your other beneficiaries. Second, you can name a new beneficiary to take over that portion of your estate.
Who has the right to change a recoverable beneficiary?
The owner of a life insurance policy has control over the policy. The owner can make changes to the beneficiary designation, and in some cases, change the death benefit amount. Every policy provides for a revocable beneficiary.
What can override a beneficiary?
An executor can override the wishes of these beneficiaries due to their legal duty. However, the beneficiary of a Will is very different than an individual named in a beneficiary designation of an asset held by a financial company.
Can a family contest a beneficiary?
A beneficiary designation can also be contested for lack of capacity if there is evidence the account holder was not of sound mind when they signed the form.
Can an executor cheat a beneficiary?
Executors are bound to the terms of the will, which means they are not permitted to change beneficiaries. The beneficiaries who were named by the decedent will remain beneficiaries so long as the portions of the will in which they appear are not invalidated through a successful will contest.