AboutJohn M. Buob Expertise I am a tax planner, preparer and business owner. Spent many years in the life insurance business. I advised business owners on the the aspects of business owership and tax planning for their business. I DO NOT answer questions about the stock market.
Experience I am a tax planner, preparer and business owner. Spent many years in the life insurance business. I advised business owners on the the aspects of business owership and tax planning for their business. I DO NOT answer questions about the stock market.
Question Is it legal for an insurance company to request that my mother repay the money that she received even though it was an error made by the deceased's former employer. According to the life insurance co. the company didn't realize that there was a newer beneficiary than my mother and therefore they request that she writes a letter stating that she was incorrectly paid and is sending in a check for the full amount that she cashed in 2 months prior to the letter! She was laid off at the time and took it to the bank that it was drawn on, it was legitimate, she cashed it and like any other normal person; she has been paying her bills. Now, because she is not at fault, can the insurance come at her for the money or if she decides not to cooperate will they go for the company who made the error? She does not have money laying around like that. She waited a few weeks before even touching the money and 2 months later they want a repayment within 30 days of the dated letter. What should my mother do??
Answer It is not clear form your story who is at fault by not knowing there was a more recent beneficiary. Depending on the amount of the money, she may want to talk to an attorney and find out what her LEGAL position is. Again, if it isn't a huge amount, tand she doesn't pay it back, or said she spent it because she was broke, they can't get blood out of a turnip, so to say. It may not be worth their while trying to get it back. That's what I would do. John
