Unless there was some some kind of fraud here, and this is not indicated by the facts that you have presented, there seems to be no grounds to challenge the payout. The fact is that insurance proceeds are not part of a person's estate when they die. They pass separately to the named beneficiary. And there is no provision in the law that an insurance beneficiary must be a person's child. Additionally, since so much time has passed, so too has the time in which z lawsuit can timely be filed. Accordingly, your granddaughter's mother appears to have no standing here regarding the payout.