Supreme Court Favors Ex-Wife Over Widow In Battle For Life Insurance Proceeds

Supreme Court Favors Ex-Wife Over Widow In Battle For Life Insurance Proceeds

In the event of a divorce, it is important to remember about changing the beneficiaries nominated on any life insurance policies and pensions (both employer and personal). Failing to do so could mean that, in the event of death, your assets would not be distributed in accordance with your wishes.

When Warren Hillman died in 2008 at the age of 66, his assets included a life insurance policy worth $124,558.03. The U.S. Supreme Court found that his ex-wife, who Hillman divorced 10 years before he died, was entitled to every penny of it.

All this because Hillman made a basic, and unfortunately all too common, estate-planning mistake: when he divorced he did not change the beneficiary designation for a life insurance policy. 

A beneficiary designation is a document given to an insurance company or financial institution, indicating who should inherit certain assets that do not pass under a will or trust.

Forgetting to coordinate these non-probate assets, as they are called, with the rest of your estate plan can completely thwart your objectives, as it may have done for Hillman.

Perhaps he forgot about the life insurance policy. In any event, he didn’t change the beneficiary either when he got divorced, or after his subsequent marriage, or after being diagnosed with a rare form of leukemia from which he ultimately died.

Some states have laws protecting a subsequent spouse from such oversights. Washington state does not.

Words to the wise: 

keep those beneficiary forms up to date. To change a beneficiary — for example, if you get married or divorced or your spouse dies — make sure to file an amended form. 

Give us a call today, at 206-926-9848, if you would like some guidance. We will be able to instruct you on changing these designations and assist you in creating a customized estate plan that will ensure you will not make the same mistake as Warren Hillman. 

STAY UP TO DATE

Subscribe to our newsletters

 
Subscribe to one or more of our newsletters, delivering meaningful insight on topics that matter to you and your family.
ebl home subscribe image

FURTHER READING

Latest Blog Posts

Everyone who has anyone in their life needs an estate plan, even people who own little or no property.

A common question about legal fees is why they are so high. The following article details what is built into legal fees and explains their cost.

Gifting an estate plan is an act of love because an estate plan goes far beyond material possessions, addressing the emotional, practical, and long-term well-being of your loved ones.

Prenuptial agreements (also known as prenups) can play a pivotal role in safeguarding individual spousal rights in the event of divorce and can also strengthen a marriage.

Valentine’s Day can be tricky for single parents, maybe even you. Unpartnered, at least for the time being, you might not foresee your plans fitting into conventional images of the holiday. But that doesn’t have to be. Valentine’s Day, when you’re single, can be more than a day you need to survive. It can be a day to look forward to.

Collaborative law has evolved into a globally practiced
discipline, extending well beyond the realm of family law, and is used frequently in Seattle divorces.

Classifying January as divorce month could be misleading, given how some of the numbers tell a different story. However, one thing remains clear: January is a great time for a fresh start.

A family law attorney can help with child custody (residential time) by creating or modifying a parenting plan.

Given the importance of the trustee’s role in an estate plan, it is necessary to understand the responsibilities before choosing a trustee or accepting the obligation to become one.

If you and your partner reside in Washington state and are unmarried, you each might qualify for the legal protections availed to you by law by classifying your relationship as a committed intimate relationship.