Life Insurance Payout with wrong beneficiary
My mom passed away this January at the age of 88 years young. She did not update the beneficiary on her two-life insurance policies. The problem is the first check we received from Mutual of Ohama ($5,500) cannot be cashed at the bank. The bank had us open a checking account and get an EIN number, which we did, however, when we come back to the bank, they want us to obtain a “Letter of Office”, which I am told will cost half or more than the $5,500 life insurance check.
The second check from Prudential which is only $1000.00 we are having a hard time getting them to send the check.
Do you know how much a “Letter of Office” will cost? Do you know is this standard procedure to obtain “Letter of Office”?
I know many people who have life insurance policies do not think about updating their beneficiaries when the spouse passes. Hope this helps others, so they do not have all these hoops to jump through for $6,500.00.
Thank you for your time.
Kind Regards,
Terry Says
Ugh, in every speech I remind people to update their beneficiaries. Did your mother have a will? If so, when it was probated you became the executor. Those documents should serve as proof that you are entitled to this amount. (I’m assuming that the person originally named on the policy is deceased, or some other good reason why you believe the estate is entitled to this amount.)
If you show them this information (and the same for Prudential) that a court has named you as executor, you should be able to get the money. If not, please write back.
Oh and just thinking, if she died “intestate” — without a will — then you will need to go to probate court to get named as executor. In some courts, you can represent yourself and won’t need to pay an attorney.
