How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask RayAnswers Your Own Question
RayAnswers
RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 37655
Experience:  Texas lawyer for 30 years in Estate law
8534270
Type Your Estate Law Question Here...
RayAnswers is online now
A new question is answered every 9 seconds

IF there is a divorce after an Irrevocable trust Annuity is

Customer Question

IF there is a divorce after an Irrevocable trust Annuity is signed in a State where an irrevocable annuity cannot be sold or changed, does the divorced spouse mentioned in the agreement receive the payments as defined in the original paperwork,even though the owner of the trust has expired.
Submitted: 1 year ago.
Category: Estate Law
Expert:  RayAnswers replied 1 year ago.

Hi and welcome to JA. I am Ray and will be the expert helping you today.

The divorced spouse here if they are named as beneficiary should receive such annuity payments.

Kansas has a law here about divorce and wills but it does no extend to named beneficiaries of life insurance or pension plans.

The automatic revocation provision under Kansas law only applies to wills. This can be a prblem if a deceased person listed his former spouse as beneficiary on an insurance or annuity policy during the marriage, then failed to change the designation after divorce. To address this issue, the state legislature passed a law that requires judges to include changes in beneficiary status as part of the property division aspect of the divorce and note the change in the divorce decree. This rule applies to all asset transfers that take effect upon death, including trust instruments and payable on death accounts.

Although Kansas law requires that the change in beneficiary status for trusts and other payable on death accounts become part of the final divorce decree, this rule does not effectively change the beneficiary designation. Instead, the spouse who owns the policy must contact the insurance company or bank and make a request to have the former spouse removed from the policy. This is also true for trusts, which need to be updated by the owner if he wants to change beneficiary.

Here this was not done so you should be able to inherit from the irrevocable trust annuity if he did not revoke the designation after divorce.

You should be paid as named beneficiary since this doesn't pass by will but rather by designation.

This is just a unique situation under current Kansas law, it amounts to a loop hole but the deceased should have changed it otherwise ex spouse still gets paid as the named beneficiary.

I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.

Related Estate Law Questions