Legal Question in Wills and Trusts in Washington
Community Property vs. Named Beneficiaries in a Life Insurance Policy
My father passed earlier this month. He had a small life insurance policy through his union affiliation. I was named as the beneficiary.
I was surprised to hear from the plan administrator that my father's new wife will receive 50 percent of the distribution. I am confused because I've heard from so many people that life insurance is a contract and the only way to deviate from distributing fully to the named beneficiary is if the beneficiary has predeceased the policy owner.
The plan administrator is stating since Washington is a community property state, the surviving spouse automatically receives half of the payout.
Please advise.
3 Answers from Attorneys
Re: Community Property vs. Named Beneficiaries in a Life Insurance Policy
If the premiums of the policy were paid with separate property funds the wife may not be entitled to 50% of the proceeds. But there is an assumption that the premiums were paid with community property assets, in which case a spouse has a 50% community interest. You should do a little more research and perhaps consult with a probate attorney.
Re: Community Property vs. Named Beneficiaries in a Life Insurance Policy
If the premiums of the policy were paid with separate property funds the wife may not be entitled to 50% of the proceeds. But there is an assumption that the premiums were paid with community property assets, in which case a spouse has a 50% community interest. You should do a
Re: Community Property vs. Named Beneficiaries in a Life Insurance Policy
You need to talk to an atty who can help you sort out some issues here. There are several questions unanswered in your story - such as - did your Father have separate property or a community property agreement, did he leave a will, was the insurance policy proceeds part of his estate or not?
The Plan administrator is not a judge. If you don't like their interpretation, you need to go ask a judge to give you what you think is your due. This is more complicated than what an attorney can advise you without more information. Good luck.
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