How to distribute insurance money to strained family members?

Question

I have a strained relationship with 3 brothers, father. The oldest brother, David, had mental health issues. I borrowed him large sums of money for rent/food. No one else supported me, or supported David. They said they couldn't afford it-debts. David would have been homeless. David started to do well again. He had a good job. He succumbed to his mental illness & killed himself. David's life insuarnce money is here. He left no beneficiery. A suicide note was addressed to me as next of kin. My Dad turned the money over to me to distribute as diplomatically as possible. My Dad only instructed me to reimburse myself for Brother's debt to me and my funeral expenses. My other two brothers want 'thier fair share' (equal 1/4 of money) like a week ago-they have debts, etc My first inclination is to set up 529C college savings accounts for my children and nieces and nephews that will never know their uncle-and/or donate to mental health research/suicide hotline.

Answer 1

I deeply appreciate your generosity and common sense but I suggest you go to a good lawyer TODAY. You may even have to meet with the lawyer and your dad and get clarity as to LEGALLY what is going on her. Do it NOW before the unhelpful selfish brothers start making trouble!

Answer 2

If the insurance money was turned over to your dad, then he was either the beneficiary or the insurance company made him beneficiary because he is actually considered next of kin. If your dad gave the money to you then reimburse yourself and give the rest back to your dad to do what he thinks is right. He has put you in a bad position but it is going to cause more trouble if you set up accounts for your children and nieces and nephews. I am assuming your brother David didn't have any children himself. If he did, then the money should go to them.

Answer 3

To begin with no insurance policy is written without a beneficiary. Meantime if someone received a check they were definitely the beneficiary in this case your dad. Something seems a little off here. Why are you the slightest bit concerned about giving them any of this money and how the heck did your check cash that check if his name wasn't on it?????