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<p class="MsoNormal"><span style="font-size:16.0pt">I think Joshua’s analysis is spot on. With that said, I feel like I am recalling some case law where life insurance (which is not code driven like Qualified Plans) was paid to the named beneficiary without
delivery. Any chance they’d go for the King Solomon approach and save time and fees?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><i><span style="font-family:"Script MT Bold"">Diane J. Kiepe<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold""><o:p> </o:p></span></i></p>
<p class="MsoNormal">Diane J. Kiepe<o:p></o:p></p>
<p class="MsoNormal">Douglas Eden<o:p></o:p></p>
<p class="MsoNormal">717 W. Sprague Ave.<o:p></o:p></p>
<p class="MsoNormal">Suite 1500<o:p></o:p></p>
<p class="MsoNormal">Spokane, WA 99201<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:djkiepe@depdslaw.com"><span style="color:#0563C1">djkiepe@depdslaw.com</span></a><o:p></o:p></p>
<p class="MsoNormal">509-455-5300<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Joshua McKarcher<br>
<b>Sent:</b> Thursday, September 8, 2022 7:28 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] TOD Beneficiary Designation Signed but not Mailed<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">I have encountered something similar, without the fact of a medallion guaranty (which strikes me as odd if it wasn’t a current asset transfer request but a mere death designation, but so be it). The phrasing "<span style="font-family:"Optima-Regular",serif">Transfer
Request for a TOD beneficiary designation of a stock</span>" strikes me as odd, but I'll assume you mean it was some form NOT intended to transfer ownership contemporaneously but indeed only at death. <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">In my case, without delivery of the IRA beneficiary designation form to the financial institution, there was nothing to be done. Admittedly, California law technically applied, not Washington, but I’m not sure there is a 50-state survey
out there on this particular issue that would modify the analysis by state. <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">(If it was intended as a lifetime transfer of stock, not a death designation, then a different contractual provision or set of laws would apply. But I'd be surprised if the outcome was any different without delivery.)<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Now, if the institution was the same as the one that provided the medallion stamp guaranty, maybe you’d have some kind of delivery argument, but even then I seriously doubt it. Because the whole point is that one must follow the
<u>institution’s</u> reasonable requirements in order for the <u>contractual</u> right (to designate a death beneficiary, or to effectuate a lifetime ownership transfer) to have any force. (Also, I’ve never heard of a medallion stamp guaranty by an institution
for its own forms, but who knows? I've probably posited an absurdity anyhow.)<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">The paper is irrelevant, I would think. He was entitled to change his mind until he placed it in the mail (or faxed or emailed it, or whatever) to achieve delivery.<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">I think the law assumes (or, more precisely, does not disallow the institution to conclude) that he did not complete the steps required to make a valid beneficiary designation (or lifetime transfer). <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">It’s hard to fathom a probate court ordering payment to the purported beneficiary, short of some bizarre interference or fraud on someone’s part to prevent the decedent from delivering the designation. But even then the proceeds would be
payable to the estate and recovery would be on a legal theory other than “the designation is valid.”<o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
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<p class="MsoNormal">But that is all worth nothing much if I'm ignorant of some Washington rule of law that changes the outcome. If someone knows of some such rule, I will be as excited as the designated beneficiary (but for different reasons
<span style="font-family:"Segoe UI Emoji",sans-serif">😉</span>) to read of it. <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">All the best, Josh <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Joshua D. McKarcher<o:p></o:p></p>
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<p class="MsoNormal">McKarcher Law PLLC<o:p></o:p></p>
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<p class="MsoNormal">537 6th Street<o:p></o:p></p>
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<p class="MsoNormal">Clarkston, WA 99403<o:p></o:p></p>
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<p class="MsoNormal">(509) 758-3345<o:p></o:p></p>
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<p class="MsoNormal">(509) 758-3314 (fax)<o:p></o:p></p>
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<p class="MsoNormal"><a href="mailto:josh@mckarcherlaw.com">josh@mckarcherlaw.com</a><o:p></o:p></p>
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<p class="MsoNormal"><a href="http://www.mckarcherlaw.com">www.mckarcherlaw.com</a><o:p></o:p></p>
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<p class="MsoNormal"><b><span style="color:black">From:</span></b><span style="color:black">
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>> on behalf of Neli Espe, J.D. - Olympic Legal <<a href="mailto:neli@olympiclegal.com">neli@olympiclegal.com</a>><br>
<b>Sent:</b> Thursday, September 8, 2022 5:50:09 PM<br>
<b>To:</b> <a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a> <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] TOD Beneficiary Designation Signed but not Mailed</span>
<o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif">Dear List-mates,</span>
<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif">Prior to his passing, PNC signs a Transfer Request for a TOD beneficiary designation of a stock with all formalities of Medallion guaranty and family members watch him do this. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif">PNC is fully competent, but elderly, so the beneficiary designation form does not get mailed. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif">In the current probate, if the TOD beneficiary designation is valid, the asset goes to A, but if not, asset will be distributed to B under a clause in the Will. A TEDRA agreement is unlikely
as both A and B wish to receive the asset. The PR (with non-intervention powers) plans to seek direction from the court. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif">Has anyone dealt with this type of situation? If so, would you be willing to help with a few pointers or cases?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif">Kind regards,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif">Neli<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Optima-Regular",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Optima-Regular",serif;color:#5BD2E6">___________________________________</span><span style="font-size:9.0pt;font-family:"Optima-Regular",serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:9.0pt;font-family:"Optima-Regular",serif;color:#1B40AF"> Neli Espe, J.D., Olympic Legal </span></b><span style="font-size:9.0pt;font-family:"Optima-Regular",serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Optima-Regular",serif;color:#133FE9"> <a href="http://olympiclegal.com/">olympiclegal.com</a></span><span style="font-family:"Optima-Regular",serif"><o:p></o:p></span></p>
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