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Can you tell me what state they were in when they divorced?
Ok, actually Colorado statutes say a divorce or annulment revokes beneficiary designations to the former spouse. The life insurance policy is treated as if the former spouse died before the spouse whose life was insured. COLO. REV. STAT. section 15-11-804.
(2) Revocation upon divorce. Except as provided by the express terms of a governing instrument, a court order, or a contract relating to the division of the marital estate made between the divorced individuals before or after the marriage, divorce, or annulment, the divorce or annulment of a marriage:
.(a) Revokes any revocable (i) disposition or appointment of property made by a divorced individual to his or her former spouse in a governing instrument and any disposition or appointment created by law or in a governing instrument to a relative of the divorced individual's former spouse,
So the divorce automatically revokes the designation and the new spouse would just have to file a claim and contact the insurer with a copy of the divorce paperwork and then they would pay the proceeds to her.
You are very welcome. Happy to help any time.
There are up to 4 entities involved in an insurance policy.. the insurer, the insured, the owner of the policy, and the beneficiary. So if father just transferred ownership of the policy into the trust, but he never named another beneficiary after the divorce revoked mother as the beneficiary, then his estate would then become the beneficiary and those proceeds would be paid to his estate to descend according to any will or under intestate law.
As for trusts, he can have as many as he wanted, but they only control assets that were actually transferred into them...