Lesson learned....trip cancellation

[Deltala]

Something I never knew about a trip cancellation policy purchased thru Allianz Global Assistance, mostly because I didn't read the policy.

 

I purchased airline tickets to Aruba for my husband and me. The booking was under my name, the insurance policy was issued in my name, all was paid by the credit card in my name.

 

My husband died unexpectedly in March. I went through the process of canceling his ticket and filing for compensation by Allianz. I learned at that time that since I would not be canceling my ticket that I would no longer be covered under this policy, since I was "using" it at that time. No biggie.

 

I received the check in the mail today....made out to my husband's name c/o his estate. All of our careful planning went out the window. We had arranged our affairs so that we wouldn't need to go through probate. Until now. I'll call my attorney in the morning to talk costs. Hopefully it will be a wash, but I would rather leave the money locally rather than in Allianz's pocket.

[CruiserBruce]

Talk to the attorney first before jumping to any conclusions here.

 

Sorry to hear about your husband's passing.

[Keith1010]

Best to call your attorney as you noted.

 

So very sorry about your husband's passing.

 

Keith

[goose30]

In most jurisdictions getting permission to cash an estate check is no big deal. Before talking to your lawyer give a call to someone in the probate's office and explain that your husband died and you have one check made out to the estate. The folks in the Probate's office are generally very kind and understanding. They will ask you to come in, sometimes they have night hours, you show them a copy of the will, if there is one, and death certificate. Then you sign some papers and they send you a letter saying you can cash the check.

 

Now the fun begins because the bank will try and get you to open an estate account. You don't need that either. With the letter from the Probate and talking to the bank. They should cash the check.

 

If additional checks come in you have to get them added to the letter so you can cash them.

 

I have done this. It works. I did not use a lawyer. It was a no hassle, simple procedure. Cost was minimal (Probate's office processing fees only). It really only cost time.

 

Sorry about your husband's passing as well.

[CruiserBruce]

In most jurisdictions getting permission to cash an estate check is no big deal. Before talking to your lawyer give a call to someone in the probate's office and explain that your husband died and you have one check made out to the estate. The folks in the Probate's office are generally very kind and understanding. They will ask you to come in, sometimes they have night hours, you show them a copy of the will, if there is one, and death certificate. Then you sign some papers and they send you a letter saying you can cash the check.

 

Now the fun begins because the bank will try and get you to open an estate account. You don't need that either. With the letter from the Probate and talking to the bank. They should cash the check.

 

If additional checks come in you have to get them added to the letter so you can cash them.

 

I have done this. It works. I did not use a lawyer. It was a no hassle, simple procedure. Cost was minimal (Probate's office processing fees only). It really only cost time.

 

Sorry about your husband's passing as well.

 

All of this may vary on the laws of the OP's state, the type of (I assume) trust that has been built, and the way the checking account was structured when the trust was created. It may be that nothing will change.

 

That is why talking to the attorney is very important. I am trying not to mislead the OP.

[goose30]

There certainly can be no harm in talking to the probate's office before going to the attorney. They will tell you how to proceed.

 

There are many more people without trusts and wills than there are with.

 

Stay away from the attorney if you can.

[Clay Clayton]

Perhaps I am being over simplistic, but I think before I did anything I would call the insurance company back and ask them to reissue the check.

[CruiserBruce]

You might note the OP's husband passed in March. The actions required to deal with the estate, trust or not, including working with the attorney and perhaps changing the checking account, have already been underway for several months. So calling the attorney is the correct thing to do.

[Deltala]

Thanks everyone for your kind comments.

 

I did ask Allianz to re-issue the check, but they refused stating that it was paid according to policy. My argument was that the policy was issued in my name, he was a travel companion, and paid for by me with a credit card in my name. It is what it is.

 

I'll keep you posted on how this gets resolved.

[kenish]

First and foremost, condolences on your loss.

 

The insurance company acted correctly, and I believe by law cannot make out the check to anyone other than the "estate of". Otherwise, I could take out a policy on you without your knowledge and name myself as beneficiary. Then I put a hit on you and collect the money. This has actually happened (an infamous case was in the 60's where a guy took out a flight insurance policy on his mother, put a bomb in her luggage, and all aboard the plane died).

 

Now, if your husband purchased the policy then he could name whoever he wants as beneficiary...but the default is still "estate of" if nobody was specifically named.

 

If you don't have a Trust, then I believe probate is mandatory unless the estate is small. The estate goes to the spouse after probate unless the Will says otherwise. If there is a Trust, then the "pour over" clause ought to transfer the insurance check into the Trust. So either way you will receive the settlement.

 

Caveat- I'm not an attorney, just my experience from being executor of two relative's estates and from my own estate planning. Definitely consult your attorney. If you don't have one, some attorneys give free or flat rate 30-minute consultations. Also there's Legal Aid, and some employers and organizations such as AARP often have access to legal assistance.

[KCcruisin07]

Perhaps I am being over simplistic, but I think before I did anything I would call the insurance company back and ask them to reissue the check.

That's what I was thinking too. First everything was taken out in your name. Also usually most people/companies are compassionate in these circumstances.

I'm sorry for your loss too, and I hope this works out easily.

[critterchick]

My condolences on your loss. As others have noted, what happens now depends on the state in which you reside. In California (where I practice trusts and estates law), if the insurance proceeds are the only item that would otherwise be subject to probate, you would most likely be able to transfer the funds by affidavit instead of a court proceeding. I hope that your state has the same kind of procedure.