Results · Interpleader · Beneficiary disputes

Father receives $132,000 in a court-approved settlement over a late beneficiary change

The insured switched his group life beneficiary from his father to his former wife months before his death. The court approved a settlement that paid our client and created a trust for the insured's child.

Amount
$132,000 (court-ordered payment to our client individually)
Counsel
Interpleader Law
Result for
The insured's father, our client
Case
Hartford Life & Accident Insurance Co. v. Nebergall
Court
U.S. District Court, District of Kansas
Docket
No. 6:21-cv-01184-JAR-JPO
Decided
February 9, 2022
Issue
A constructive trust claim after a late beneficiary change, resolved by a court-approved minor's settlement

After his divorce, the insured named his father as the sole beneficiary of his employer group life coverage. According to the father, he did so with the understanding that the money would be used to care for the insured’s young child. A few months before his death, the designation was changed to his former wife. The father brought a constructive trust claim, and the insurer deposited the benefits and was dismissed.

We represented the father. The claimants reached an agreement, but because it affected a minor, the court first required a guardian ad litem. With the guardian’s agreement, the court approved the settlement as in the child’s best interests, created a trust for the child with our client as trustee, and ordered the registry funds disbursed, including the amount shown to our client individually.

What it shows. When a child’s interests are at stake, a settlement must be approved by the court, and a federal interpleader court can structure the payout to protect the child.

Read the court's order

For a detailed legal summary of this decision, see interpleader.com's decisions library.

Past results do not guarantee a similar outcome. This summary describes the court's ruling; it is not legal advice about any other case.

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