Interpleader Lawyer

Interpleader Lawyer Montana

Our Montana interpleader lawyers handle all life insurance interpleader cases and beneficiary disputes.

A life insurance interpleader case is a legal action that occurs when there are conflicting claims to the proceeds of a life insurance policy. The insurance company files an interpleader complaint with the court and deposits the policy proceeds with the court, asking the court to decide who is entitled to receive the money. The insurance company then names all the potential beneficiaries as defendants in the suit and is usually discharged from further liability.


Montana Life Insurance Interpleader Cases

A dispute between an ex-spouse and a new spouse or girlfriend over the proceeds of a life insurance policy can lead to a life insurance interpleader when both parties make conflicting claims to the benefits. Here’s how such a dispute can result in an interpleader:

  1. Beneficiary Designation Dispute: When the insured individual passes away, and there is a dispute over who the rightful beneficiary is, the insurance company may initiate an interpleader. This typically occurs in situations where the insured person has not updated their beneficiary designation after a change in marital status, such as a divorce and subsequent remarriage.

    • Scenario: The insured individual was married to their first spouse, designating them as the beneficiary on the life insurance policy. After the divorce, the insured remarried, but they did not update the beneficiary designation, leaving the first spouse as the named beneficiary. After the insured’s death, both the first spouse and the new spouse or girlfriend make claims to the policy proceeds, resulting in a beneficiary designation dispute.
  2. Legal Challenges: If the ex-spouse believes they have a legal right to the insurance proceeds based on divorce agreements, court orders, or other legal documents, they may contest the new spouse or girlfriend’s claim. This legal challenge can prompt the insurance company to initiate an interpleader to avoid being caught in the middle of the dispute.

    • Scenario: The divorce decree or settlement agreement specifies that the ex-spouse is entitled to the life insurance proceeds as part of the divorce settlement. The new spouse or girlfriend disputes this claim, asserting that the insured had intended to change the beneficiary designation but failed to do so before their death. The legal dispute between the two parties leads to an interpleader.
  3. Unclear Intentions: If the insured’s intentions regarding the beneficiary designation are unclear or disputed, the insurance company may be unsure which party should receive the policy proceeds. This uncertainty can prompt the insurance company to initiate an interpleader to have a court determine the rightful beneficiary.

    • Scenario: The insured individual made ambiguous statements or left conflicting indications about who should be the beneficiary of their life insurance policy after their divorce and remarriage. The insurance company, faced with the lack of clarity, initiates an interpleader to seek a legal resolution.
  4. Failure to Update Beneficiary Designation: In cases where the insured individual intended to change the beneficiary but failed to do so before their death, the insurance company may need to resolve the dispute between the ex-spouse and the new spouse or girlfriend through an interpleader.

    • Scenario: The insured person had the intention of updating their beneficiary designation from the ex-spouse to the new spouse or girlfriend but did not complete the necessary paperwork before passing away. Both parties claim entitlement to the policy proceeds, leading to an interpleader to determine the intended beneficiary.

In these situations, the life insurance company may initiate an interpleader to deposit the policy proceeds with the court and let the court determine who the rightful beneficiary should be. This legal process helps the insurance company avoid potential liability and ensures that the correct beneficiary is determined through a legal resolution.

How a Montana Interpleader Lawsuit Works

A Montana Interpleader Case Background:

Mr. Anderson, a successful business owner, held a substantial life insurance policy with Life Insurance Company such as Geico Life, AXA Life or Foresters Life. Unfortunately, he passed away unexpectedly. The life insurance policy listed two potential beneficiaries: his sister, Lisa, and his business partner, Alex.

Beneficiary Dispute:

Both Lisa and Alex claimed to be the rightful beneficiary of the life insurance proceeds. Lisa argued that Mr. Anderson had verbally expressed his intention to make her the sole beneficiary, while Alex insisted that they had a written agreement that entitled him to the proceeds as a key person in the business.

Interpleader Claim Initiation:

In light of the conflicting claims, Life Insurance Company decided to file a life insurance interpleader claim in the appropriate court. They deposited the policy proceeds with the court and submitted the necessary documentation, naming Lisa and Alex as defendants in the interpleader action.

Court Proceedings:

The court would then summon Lisa and Alex to present their cases. Lisa would have the opportunity to provide any evidence supporting her claim, such as witness statements or any documentation suggesting Mr. Anderson’s verbal intent. On the other hand, Alex would present the written agreement and argue that it supersedes any verbal communication.


The court, in its role as a neutral party, would evaluate the evidence presented by both parties. The goal is to determine the rightful beneficiary of the life insurance proceeds. If the court cannot definitively decide, the funds deposited by Life Insurance Company would be distributed equitably or as determined by the court.


Life insurance interpleader claims are essential in cases of beneficiary disputes, ensuring a fair and impartial resolution while protecting the insurance company from potential legal repercussions. This hypothetical scenario illustrates the complexity and importance of such interpleader claims in navigating beneficiary conflicts.

Contact us