[WSBAPT] Question regarding intestate distribution

[Eric Nelsen]

Diane—I thought your post was accurate. There are some funky provisions on term life, where you have to get really nitpicky about how long the term is and what payments apply to the term, and characterize based on the character of the funds used to make those payments. So if the policy has a one-year term and payments are monthly, then you have to characterize all the monthly payments applicable to that term, in order to determine character of ownership.

For Dewey's situation, I think one issue will be whether the surviving spouse consented/ratified/acquiesced in designation of decedent's estate as the beneficiary. If the surviving spouse did not consent, there can be an argument about whether 50% of the proceeds should just go to the spouse directly, versus how much go to the estate (and then, possibly, to the spouse).

I think that's true, anyway. I don't remember the rules very clearly either; I have to re-learn them every time.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

Covid-19 Update - All attorneys are working remotely during regular business hours and are available via email and by phone; please call the Seattle office. Videoconferencing also is available. Signing of estate planning documents can be completed and will be handled on a case-by-case basis; please call the Seattle office.

MAIL AND DELIVERIES can be received at the Seattle office. For any other needed arrangements, please call the Seattle office.

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Diane J. Kiepe
Sent: Tuesday, October 13, 2020 4:07 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Question regarding intestate distribution

Good catch Eric,

I think the rules I stated are for the policy itself.

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Eric Nelsen
Sent: Tuesday, October 13, 2020 3:58 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Question regarding intestate distribution

Life insurance can be tricky to characterize. The rules are described in the WSBA Community Property Deskbook (4th ed. 2014); see Chapter 3.2(4). I highly recommend it. Ownership of the life insurance policy, versus characterization of proceeds, can be an issue. Also federal law can preempt state law if the policy was an employment benefit or was a military service benefit. If you don't want to buy the deskbook you can get online access it to it fairly cheaply via Casemaker Libra: https://washington.casemakerlibra.com/home/index.aspx?st=WA


Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

Covid-19 Update - All attorneys are working remotely during regular business hours and are available via email and by phone; please call the Seattle office. Videoconferencing also is available. Signing of estate planning documents can be completed and will be handled on a case-by-case basis; please call the Seattle office.

MAIL AND DELIVERIES can be received at the Seattle office. For any other needed arrangements, please call the Seattle office.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Dewey Weddle
Sent: Tuesday, October 13, 2020 3:25 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Question regarding intestate distribution

Esteemed colleagues,

Facts:  Mother dies intestate.  She is married at the time of her death and she leaves behind two minor children.  She left a life insurance policy that named her estate as the beneficiary.  The rules of intestate succession indicate that spouse is entitled to receive all the community property and one-half of her separate property and the children are to receive the other half of her separate property RCW 11.04.015 (1)(a)(b).  Question:  Because the life insurance policy named the estate as the beneficiary, how does one characterize the proceeds?  Separate or community?  I am hoping that some of you have encountered this problem and can point me in the right direction.


Best regards,



Dewey W. Weddle​​



Law Office of Dewey W. Weddle, PLLC

909 7th Street

Anacortes, WA 98221



Telephone: 360-293-3600

Fax 360-293-3700




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