Many people assume that the surviving spouse automatically inherits everything. However, this is not the case in California. When a person dies without a will in California, their assets are distributed to their family members according to the state's intestate succession laws.
Do I have to name my spouse as beneficiary for 50 percent of my life benefit? No, the Policy is set up to pay the percentage you list for each named beneficiary regardless of whether you have a spouse. Naming your beneficiary is strictly your personal decision.
Yes, you can name anyone, including persons that you are unrelated to, as a beneficiary of your retirement accounts. However, you should note that some retirement accounts will require a spouse's consent if you name someone other than your spouse. Be sure to check the requirements if you are married or become married.
If you reside in a “community property state” (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin), you need your spouse's consent to designate any primary beneficiary other than your spouse.
If you are a resident of certain states, you may be required to list your spouse as your primary beneficiary and designate him or her to receive at least 50 percent of the benefit. In some states, you can name someone else with your spouse's written permission.
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 community property states, a spouse is automatically considered the life insurance beneficiary unless they indicate explicitly otherwise in the policy.
Estranged relatives or former spouses – Family relationships can be complicated, so think carefully if an estranged relative or ex-spouse really aligns with your wishes. Pets – Pets can't legally own property, so naming them directly as beneficiaries is problematic.
Remember, immigration law requires you and your spouse to answer each question correctly. Keep in mind that if you are the petitioner for a green card throughout the application, the form will refer to you as the “spouse beneficiary.”
There are several reasons a spouse might not be named as the beneficiary: The deceased spouse purchased the policy before the marriage and forgot to update the beneficiary. The deceased might have chosen someone else (such as an adult child or even a beloved charity) instead of a spouse to receive the benefits.
Most life insurance companies require you to name at least one beneficiary. If beneficiaries are not named, the life insurance proceeds can go to your estate. If you don't have a will, your estate, including the death benefit, may need to go through probate court.
If the beneficiary name is incorrect, your transfer will not go through and the money will be returned to the original bank from where it was transferred.
In many cases, the spouse can inherit your house even if their name was not on the deed. This is because of how the probate process works. When someone dies intestate, their surviving spouse is the first one who gets a chance to file a petition with the court that would initiate administration of the estate.
If you do not designate a beneficiary, your spouse automatically inherits your 401(k) upon your death. Beneficiaries named in your plan inherit your 401(k), even if you stipulate other people receive it in your will.
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.
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.
A lot of people name a close relative—like a spouse, brother or sister, or child—as a beneficiary. You can also choose a more distant relative or a friend. If you want to designate a friend as your beneficiary, be sure to check with your insurance company or directly with your state.
If you are married or in a common-law relationship of more than two years, your spouse is automatically your beneficiary.
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.
Life Insurance Purchased During Marriage in One Party's Name is Community Property in a Divorce. California is a community property state. That means that all property acquired during a marriage is presumed to be community property.
Durable Powers of Attorney
The surviving spouse needs to take care that another trusted person replaces the decedent as their power of attorney. The surviving spouse also must decide if the power of attorney may be used at any time, or only when he or she becomes incapacitated.
Inheritance rights depend on state law and if the decedent had a will or trust. Marital property generally transfers automatically to the surviving spouse. Separate property is divided according to the deceased person's will or intestate laws if there is no will.
For a community property in California, it depends upon when and how their spouse acquired the property. The law asserts that all property purchased during the marriage, with income that was earned during the marriage, is community property.