Estate Law Questions? Ask an Estate Lawyer.
Hi; My goal is to provide you with great service - if you have any questions during our chat, please ask! I'll do my best to ensure your satisfaction! If a beneficiary predeceases the annuity holder, then the contingent beneficiary typically is entitled to the annuity, as once a beneficiary predeceases the annuity holder, it does not become part of the original beneficiary's estate.
If there is no alternative beneficiary, then it generally is payable to the estate, and must be probated. So if this is for estate planning purposes, it is best to name contingent beneficiaries, as the cost of probate can be quite significant.
Is it relevant that the annuity company was not aware the beneficiary predeceased the annuitant?
Yes, if a pay out was made to the beneficiary's estate (the predeceased beneficiary's estate), as then the annuitant's executor (or the contingent beneficiary) would need to bring a suit to recover the money, naming the predeceased beneficiary's estate and the annuity company.
The predeceased beneficiary did not receive any part ot the annuity. The total annuity is going to the contingent beneficiary. This is customary?
Yes, it is. A person will not inherit money unless they are alive at the time of the decedent's death. In fact, often times (for wills) there is a provision requiring that the beneficiary outlive the decedent by 72 hours. This is so the property passes to the decedent's heirs, versus the beneficiaries. The way around this is to name the beneficiary's heirs as the contingent beneficiaries.
Here is a concise explanation - it restates what I said above, but does so in a very detailed manner. http://www.state.nj.us/treasury/pensions/epbam/pensions/claims/benedes.htm#bene
Last question - is it customary for the court probate documents not to contain any mention of the annuity?
Yes it is. The reason being that probate only deals with "probate assets" - those are the assets that pass via the terms of the will. In contrast, annuities, life insurance policies, real property with right of survivorship, bank accounts with Pay on Death beneficiaries -all of these pass outside the will - thus outside probate. The idea is to save substantially on probate fees, which can eat up a large portion of the estate.
Thank you, XXXXX XXXXX a big help!
You are very welcome. Hope everything works out for you and yours.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).