- Amount
- $433,000 (life insurance proceeds deposited with the court)
- Counsel
- Interpleader Law
- Result for
- The insured's former wife, the designated beneficiary, our client
- Case
- Lincoln National Life Insurance Co. v. McGrath
- Court
- U.S. District Court, Eastern District of California
- Docket
- No. 2:25-cv-01376-DC-DMC
- Decided
- July 22, 2026
- Issue
- Whether the designated beneficiary takes the proceeds when a claimant relying on an informal change does not defend
The insured’s life insurance policy with Lincoln National named his former wife as the beneficiary. After his death, his surviving spouse also claimed the proceeds, pointing to an email indicating that he had intended to change the beneficiary designation to her. Lincoln filed an interpleader in the Eastern District of California in May 2025, naming both of them.
We represented the former wife, the designated beneficiary. She answered and asked that the proceeds be paid to her as the beneficiary of record. The surviving spouse was served through her attorney but never responded, and the clerk entered her default. The magistrate judge found that she could not overcome our client’s designation as beneficiary and recommended default judgment. In July 2026 the district judge adopted that recommendation, granted default judgment, directed Lincoln to deposit the $390,000 in policy proceeds and then be discharged, and directed our client to apply for disbursement of the funds. Lincoln deposited $433,979.18 with the court in August 2026.
What it shows. A claimant who relies on an informal email about a beneficiary change still has to appear and defend that claim. When she does not, the court can enter default judgment for the beneficiary of record.
Read the court's order
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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