Claim Dispute by StepDad

[bob dobelina]

Mom lived in CA with Stepdad. She had a Universal Life policy that she took a cash advance against to make improvements to the home so she could stay at home as long as possible. She left her trust as beneficiary. Now stepdad who was written out of trust and will is claiming he is due the proceeds. He will not do a split of proceeds because she "spent" her portion on expenses. Now since CA is community property regardless of what she did he gets half. My question is does he really get half of what is left or half of original policy amount?

 

[Dandy Don]

Community property applies in a divorce, but that is not what is happening here. If he is not named as a beneficiary in the trust, then he does not get anything. And if he is named as a beneficiary of the trust, he only gets what the trust says he is supposed to get.

 

[Betty]

Since the bene of the ins. pol. is the trust (& ins. proceeds pass outside the estate), the proceeds are to be pd. to the trust & distributed as per the trust. Insurance law takes precedence in this situation - not community property state.

The will is a different story. In community property states a spouse is entitled to receive their half of the community property but the deceased spouse is free to give their half of the community property and all of their own separate property to anyone named in a valid will. When there is no will, assets are distributed as per the intestate succession law of the state.

ref. law book

 

[seniorjudge]

Community property applies in a divorce, but that is not what is happening here. If he is not named as a beneficiary in the trust, then he does not get anything. And if he is named as a beneficiary of the trust, he only gets what the trust says he is supposed to get.

And now FOR A LEGALLY ACCURATE ANSWER!!! (Shades of JetX):

If the decedent was married, the first question is whether the decedent owned community property, separate property, or a combination of the two. Community property is generally defined as the assets acquired during marriage from earnings or salary. Separate property is generally defined as assets brought into the marriage when the decedent got married, inheritances to the decedent, or gifts to the decedent. However, California case law provides many exceptions to these definitions, and assets can change from community to separate property, or from separate to community, by combining assets, by improving separate property with community property, or by written agreement of the spouses, for example.

1. The decedent's community property goes to the surviving spouse, who may have to file a spousal property petition to establish ownership.
2. The decedent's separate property is distributed as follows:
a. The surviving spouse receives all of the separate property if the decedent is not survived by issue, parents, brothers, sisters, or children of a deceased brother or sister.
b. The surviving spouse receives one-half of the separate property if the decedent had only one child, or issue of a deceased child.
c. The surviving spouse receives one-half of the separate property if the decedent left no issue, but left parent(s) or their issue.
d. The surviving spouse receives only one-third of the separate property if the decedent left more than one child.
e. The surviving spouse receives only one-third of the separate property if the decedent left one child and the issue of one or more deceased children.
f. The surviving spouse receives only one-third of the separate property if the decedent left the issue of two or more deceased children.


(I found this on a CA lawyer's site.)

 

[Betty]

I believe SJ's info above is if the deceased died w/o a will or trust. (died intestate) I agree with info.

Dandy Don is not right that community property only comes into play in a divorce if that is what he is saying.