Individuals may seek to contest a beneficiary designation on an IRA, life insurance policy, or other account for any number of reasons. However, while it is possible to contest a beneficiary designation, it's crucial to note that this process isn't always cut-and-dry.
An executor can override the wishes of these beneficiaries due to their legal duty. However, the beneficiary of a Will is very different than an individual named in a beneficiary designation of an asset held by a financial company.
You can put anybody you want, and as long as you name the beneficiary as ``revocable'', you can change the beneficiary anytime.
While a spouse doesn't override a designated beneficiary on a bank account, they may be entitled to a portion of the assets in a payable-on-death bank account if those assets are community property.
A life insurance beneficiary designation usually overrides a current spouse or a will. Spouses in community property states must split the death benefit with the named beneficiary. Review (and update) your beneficiaries any time your situation changes.
In order to be permitted to make the withdrawal, the spouse and the heirs must provide the bank with an affidavit establishing jurisdiction and relationship, and stating that the decedent left no will. Most banks have a form affidavit that is available at the bank branch for completion of this process.
If you own the policy and you're not financially supporting your ex-spouse after the divorce, you can likely remove them as your policy's beneficiary. If you're on the hook for alimony or child support, a judge may require you to keep your ex-spouse as a beneficiary so support continues if you were to die.
It's generally a bad idea to name more than one beneficiary, for two reasons. First, if you name your spouse and someone else as beneficiaries, your spouse loses the special benefits and flexibility they would otherwise have. Second, it complicates things.
Any beneficiary designation can be contested, but the person contesting has to have standing and there has to be a valid reason for the dispute.
If you do not name a beneficiary, The Standard will pay the life benefit according to the “policy order.” This means your surviving spouse will be paid the benefit as the first person listed in the order.
Executors are bound to the terms of the will, which means they are not permitted to change beneficiaries. The beneficiaries who were named by the decedent will remain beneficiaries so long as the portions of the will in which they appear are not invalidated through a successful will contest.
If you are married or in a common-law relationship of more than two years, your spouse is automatically your beneficiary.
Dealing with a problem beneficiary
California executors can overrule beneficiary wishes based on the decedent's will or court orders, and align actions with legal requirements. Before making such decisions, it's wise to consult a probate attorney in order to comply with regulations and avoid potential disputes.
When someone contests a beneficiary, they usually hire an attorney. They also contact the life insurer before it pays out the death benefit, typically a few weeks after the policyholder's passing. Once a life insurance company receives a notice of contest, they'll wait for everything to be settled out of court.
In most cases, the account holder can name a beneficiary, whether that's a child, another relative, or someone else other than their spouse.
Every state recognizes one or both of the types of spousal privileges. Most state spousal and marital privileges can be found in statutes (evidentiary statutes). Federal law recognizes both types of privileges, but courts (case law) define their parameters and exceptions.
Spousal consent in this context is agreement by the spouse of a married participant to an action by the participant that affects the participant's qualified retirement plan account.
In most cases, a spouse cannot directly override a beneficiary designation on a bank account. The designated beneficiary will receive the funds regardless of the spouse's wishes unless the account holder changes the beneficiary designation before their death.
In most states, it is impossible to totally disinherit your spouse in a will. Spouses have a right of election, and can claim a certain fraction of the estate as their elective share, no matter what the will says. In community property states, a surviving spouse owns half of their shared property.
Wondering if a will overrides a beneficiary on a bank account? Generally, if the will conflicts with the beneficiary on a bank account, the banking beneficiary designation takes precedence.
Only about a third of all states have laws specifying that assets owned by the deceased are automatically inherited by the surviving spouse. In the remaining states, the surviving spouse may inherit between one-third and one-half of the assets, with the remainder divided among surviving children, if applicable.
In conclusion, it's a crime to use a dead relative's payment cards, even if they're no longer able to use them. Anyone convicted of using a card to make fraudulent purchases will face years of imprisonment for deceit, not to mention an identity theft offense will appear on their criminal record.