Mother had a policy on her nephew and recently passed. Now insurance company says that her nephew is now the owner of the policy. Can this happen? 
It does depend upon the specific circumstances when the life policy was purchased 38 years ago . It is not unusual for this to happen on most policies on minor children . Your mother was the owner and her nephew the insured . If the owner dies before the insure , the life insurance company has no choice but to make the insured the owner . Your mother can not name anyone else as owner , so I 'm not sure without full cooperation of the nephew , this will remain the same . Life insurance proceeds are outside of the will . 