The Court of Appeals issued a decision today in which it gave $500,000 in life insurance proceeds to Rebeka Andrus.  Rebeka was married to Jared Andrus.  Together, they bought a life insurance policy for $500,000 on Jared’s life.  Five years later, Jared got cancer.  The cancer progressed rapidly.  When Jared became very ill, his father, Walter Andrus was appointed as his legal guardian.

Dad called the life insurance company and got a change of beneficiary form.  He filled it out but never got Son to sign it.  When Son died, Dad sent the form to the Life Insurance Company and claimed the $500,000 in life insurance proceeds.

Dad claimed that being his son’s legal guardian gave him the legal right to change the beneficiary.  The court disagreed.

The court held that being some one’s legal guardian is not enough to change the beneficiary on their life insurance policy.  If Dad wanted to do that, he needed to go the court and get a specific order allowing him to do that.  Since he didn’t do that, the change was ineffective.  Daughter-in-law gets all of the insurance money.