Can You Challenge a Florida Life Insurance Beneficiary Designation Based on Undue Influence?
There are many kinds of assets that pass outside of the Florida probate process. One common example is life insurance. Typically, the death benefit of a life insurance policy is paid to a named beneficiary upon the death of the insured. The insured may, however, choose to alter the beneficiary during their lifetime, typically by filing a form provided by the insurance company.
Florida Judge Rules in Widow’s Favor in Insurance Matter
As with a Florida will or trust, it is possible to challenge a life insurance change of beneficiary form on the grounds that the insured either lacked mental capacity or was the subject of undue influence. Just recently, a federal judge in Fort Myers, Florida, issued just such a ruling. In this case, Life Insurance Company of the Southwest v. Clarke, it was actually the insurance company that sought a judicial determination of the change of beneficiary form’s validity.
Here is what happened. In 2021 and 2022, Life Insurance Company of the Southwest (LSW) issued three life insurance policies on the life of a now-deceased insured (the decedent). The decedent initially named his spouse as the primary beneficiary of all three policies. In 2024, however, LSW received a request from the decedent to change the beneficiary designation of the policies to “Hope of Glory Church of Christ,” an organization apparently affiliated with the “Moorish sovereign citizens” movement, which promotes the idea that the United States federal government is illegitimate.
After the decedent passed away in late 2024, his wife filed a claim with LSW for the life insurance benefits. She told LSW that the purported change of beneficiary form was “invalid” due to her late husband’s incapacity and the undue influence of the Moorish sovereign citizens, which she described as a “cult group.”
LSW, as is common in these kinds of life insurance disputes, then filed what is known as an interpleader action in federal court. Basically, an interpleader action is where a person or company, in this case a life insurance company, holds property claimed by others. The property holder is effectively asking the judge to determine the rightful owner.
In this case, that proved simple enough. Only the decedent’s wife appeared in court to assert her claim to the life insurance. No representative of the “Hope of Glory Church of Christ” appeared or responded to LSW’s interpleader lawsuit. (Indeed, the “Church” was apparently never registered as a legal entity in Florida.) As such, the judge granted default judgment to the decedent’s wife and awarded her the full value of the life insurance proceeds less LSW’s legal fees.
Contact a Davie Lack of Capacity Probate Dispute Lawyer Today
Many Florida residents, especially older ones, are highly susceptible to undue influence when it comes to their assets and estate planning. Even the allegation of undue influence can lead to complex and highly emotional litigation among family members. If you are in this type of situation, it is best to consult with an experienced Davie lack of capacity probate dispute attorney who can represent your interests. Contact Valero Law today at 305-607-7011 to schedule a free consultation. We serve clients in Davie, Broward County, Coconut Grove and Miami-Dade County.
Source:
scholar.google.com/scholar_case?case=18326166262564846033
