Legal Question in Wills and Trusts in Arizona

Re: Wills vs insurance policy beneficiaries

Most likely, the beneficiary named in the insurance policy's pay-on-death clause is legally entitled to receive those funds - even if the will disinherited that person. A will can only dispose of an estate's "probate assets". Financial-institution accounts such as bank accounts or annuities with pay-on-death clauses are considered "non-probate" assets. Therefore, those types of assets pass according to their own terms - not according to the terms of a will. If the terms in the annuity named a person as the beneficiary, it is unlikely that the will can change that. Of course, every case is subject to its own, unique nuances and you might have a special set of unique facts that would override the usual presumption. However, from the small amount of facts posed in your question, it seems that the annuity's own terms should govern the beneficiary of that annuity.

Anyhow, good luck with your situation. I hope it works out well for you and everybody involved. Just FYI: My law firm's website has an online weekly newsletter on which we publish many articles and case briefs on these types of topics: www.tahanlaw.com/ArizonaProbate

I am only licensed to practice in Arizona (not New York), so I should also include the disclaimer that Arizona follows the majority law that is applicable in most states, and I am not trying to represent you as your attorney.

Sincerely,

Raya Tahan

www.tahanlaw.com

Re: Wills vs insurance policy beneficiaries

It is always impossible to give an opinion on a matter like this without all the facts, and an examination of the will and other related documents.

In general, a will disposes of assets which do not pass to others by joint tenancy, beneficiary designation, a trust, POD designation, etc. From the limited facts you state, the will may not affect the annuity. See an attorney for a complete opinion.