When someone names a beneficiary for financial accounts or life insurance, that beneficiary usually has the right to receive the assets when the account holder passes away. However, there are situations where a spouse may question or challenge the beneficiary designation.
The role of the law in spousal rights
The law has certain protections in place for spouses that might allow them to override a beneficiary. If an account or insurance policy funded with marital assets names someone other than the spouse as the beneficiary, the spouse might contest this decision.
Additionally, certain retirement accounts, like pensions or 401(k)s, often require spousal consent before someone other than the spouse gets named as the beneficiary.
Circumstances where a spouse may override a beneficiary
If a court determines that a spouse was wrongfully excluded or that the assets should have gone to the marital estate, the court might override the beneficiary. This scenario could occur if the account holder changed the beneficiary without the spouse’s knowledge or consent.
Also, if the deceased person’s estate goes through probate, the court might examine the fairness of the beneficiary designation. This is especially true if it contradicts what would happen under inheritance laws.
Navigating spousal rights
Whether a spouse can override a beneficiary depends on several factors, including the type of account and the specific laws in place. Understanding these factors helps in navigating spousal rights and beneficiary designations. By knowing the rules and potential exceptions, spouses and beneficiaries can better understand their rights. They’ll also know what to expect in these situations.