[WSBAPT] CA life insurance & 401k

[Mary Stone]

Thanks Eric.

 

Does anyone happen to know what the state law is in California, assuming
ERISA doesn't apply?

 

Thanks.

 

Mary

 

From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Tuesday, January 17, 2017 11:18 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] CA life insurance & 401k

 

Forgot to mention--this is a common problem, the conflict between ERISA and
state law, and so sometimes the financial custodian and/or the life
insurance company thought ahead, and the 401k terms of contract, or the life
insurance policy, explicitly provide for an alternative beneficiary in the
event a spouse is named and there is a subsequent divorce. So the actual
policy and 401K contract terms should be reviewed to see if they provide for
this circumstance. But if there is no such contract provision, if ERISA
applies, it permits the custodian to completely ignore state law in favor of
following the exact contractual designation of beneficiary.

 

Sincerely,

 

Eric

 

Eric C. Nelsen

SAYRE LAW OFFICES, PLLC

1417 31st Ave South

Seattle WA  98144-3909

phone 206-625-0092

fax 206-625-9040

 

Please Note that We Have Moved. We have moved our Seattle office to Mount
Baker Ridge (a small commercial community just above the I-90 tunnel). Our
new address is 1417 31st Avenue South, Seattle WA 98144. All other contact
information remains the same.

 

From: wsbapt-bounces at lists.wsbarppt.com
<mailto:wsbapt-bounces at lists.wsbarppt.com>
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Tuesday, January 17, 2017 10:55 AM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] CA life insurance & 401k

 

Depends on whether the life insurance and/or 401k were employment-based
benefits. If they were, then ERISA controls (federal law, trumps any
contrary state law) and the ex-wife gets everything. If they were
purchased/funded independent of employment, then ERISA does not control and
CA law might.

 

Sincerely,

 

Eric

 

Eric C. Nelsen

SAYRE LAW OFFICES, PLLC

1417 31st Ave South

Seattle WA  98144-3909

phone 206-625-0092

fax 206-625-9040

 

Please Note that We Have Moved. We have moved our Seattle office to Mount
Baker Ridge (a small commercial community just above the I-90 tunnel). Our
new address is 1417 31st Avenue South, Seattle WA 98144. All other contact
information remains the same.

 

From: wsbapt-bounces at lists.wsbarppt.com
<mailto:wsbapt-bounces at lists.wsbarppt.com>
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Mary Stone
Sent: Tuesday, January 17, 2017 10:30 AM
To: 'WSBA Probate & Trust Listserv'
Subject: [WSBAPT] CA life insurance & 401k

 

I have a friend whose 48 Y/O brother died unexpectedly on Christmas Eve, a
resident of California. He was divorced with two children - one adult and
one minor.  The friend says that her brother has life insurance and a 401k
and it still names the ex-wife as the beneficiary.  Does that designation
lapse after the divorce under CA or federal law?

 

Thank you.

 

Mary Stone

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