other will substitutes; sucession issues for pension and retirement; limitations on freedom of dispostion Flashcards
what is life insurance
commonly used to insure against lost income on the death of a wage earner
cook
Douglas Cook bought a life insurance policy from Equitable Life Assurance, naming his then-wife Doris as the beneficiary. After divorcing Doris and remarrying Margaret, Douglas executed a holographic will naming Margaret and their son Daniel as beneficiaries but did not notify Equitable in writing. Upon Douglas’s death, Equitable filed an interpleader action, and the trial court ruled in favor of Doris
May an insured party change the beneficiary of a life insurance policy by will?
Revocation by divorce, as it applies to wills, does not apply to life insurance policies; a named beneficiary in a life insurance policy does not automatically change upon divorce.
An insured must change the beneficiary as prescribed by the policy
why do we require such strict compliance with the life insurance contract in terms of revocation?
Assurance that they don’t get it wrong
Beneficiary has an interest in expeditious payment
Efficiency of payment of benefits
you can reovke a revokable trust by a later will – via the rst is the same true for real property joint tenancies, life insurance, retirement plans, and a few other will substitutes.
NO!
egelhoff
David A. Egelhoff and Donna Rae Egelhoff divorced in April 1994. David died intestate two months later, having designated Donna Rae as the beneficiary of his life insurance and pension plan, both governed by ERISA. David’s children from a prior marriage sued Donna Rae in Washington state court to recover the insurance proceeds and pension plan benefits, citing a state statute that revoked the beneficiary designation upon divorce.
Revocation upon divorce should apply generally to will substitutes, with the exception of life insurance policies
Employer provided insurance companies are revoked upon divorce, but not independently purchased insurance policies
what is the policy determination behind the egelhoff decision
We want uniformity among the states to promote certainty because the administrators distributing the policies work across various different states
what does upc post distribution relief say
This section states that if federal law overrides (preempts) a specific provision regarding payments, and a former spouse receives a payment they are not entitled to, they must return the payment. If they do not return it, they are personally liable for the amount and must pay the person who would have been entitled to the payment if the section hadn’t been preempted by federal law.
when does a partent have just cause to disinherit a child (4)
(1) The child has raised his hand to strike a parent, or has actually struck a parent; but a mere threat is not sufficient.
(2) The child has been guilty, towards a parent, of cruel treatment, crime, or grievous injury.
(6) The child, being a minor, has married without the consent of the parent.
(8) The child, after attaining the age of majority and knowing how to contact the parent, has failed to communicate with the parent without just cause for a period of two years
at common law, how does the law protect against unintentional disinheritance by a stale premarital will?
a premarital will was revoked by the testator’s marriage or marraige followed by the birth of an issue
how does the upc deal with accidental disinheritance via a premarital will
if a surviving spouse marries the testator (the person who made the will) after the will was executed, the spouse is entitled to an intestate share of the estate.
However, this entitlement does not apply if:
The will was made with the marriage to the surviving spouse in mind (i.e., in contemplation of the marriage).
The will explicitly states that it should remain valid despite any subsequent marriage.
The testator made provisions for the spouse outside the will (such as through gifts or transfers) instead of through the will
how does the upc deal with ommitted children (ie the pretermitted hier) – simplified - see exact lang on slides
If a child is born or adopted after a will is written, they can still get a share of the estate unless the omission was intentional or the child was provided for outside the will. If a child is mistakenly left out because the testator thought they were dead, they also get a share.
