Life Ins; Slayer Statute; Interpleader?
Briefly, CO statute* allows ct to presume death after 5 yr absence iiuc, altho some states require longer wait.
Re waiting for trial to commence, then what? Does LI co pay BM; pay dau's; pay estate; or refuse to pay anyone?
Per below, I'd predict LI co would likely file an interpleader action at some point, but I could be wrong. As always, I welcome comments, clarification, corrections, esp'ly from our legal professionals,
law students, and LI professionals. Others too. Jump right in, the water's fine. No chlorine.
Not so briefly.
This hypo post discussing life ins azz-umes SM is/was the ins'd life on LI policy/ies, and that BM is the Designated Beneficiary, which are NOT known to be facts.
SM's remains recovered?
Medical Examiner would conduct autopsy, tho already (four mo's post-disappearance), difficult to determine CoD imo (unless remains have somehow been better preserved than usual). Whether remains are located now or 1 - 2 - 3 - 4 or more yrs from now, M/E would conduct autopsy (even on partial skeletal remains) and may find MoD as Undetermined or Homicide.
Once death cert is issued regardless of MoD, after des-ben or atty submits death cert & LI claim forms to LI co, then co is obligated by the LI contract to pay designated beneficiary, unless, a big UNLESS, the law prohibits des-ben from collecting under the state's Slayer Statute.**
If convicted of murdering SM or certain other homicidal crimes or if successfully sued civilly for wrongful death,
(hypo only), BM would be barred from collecting the LI payment, as well as prop, assets, and benefits, he would otherwise receive after her death. See below re non-probate transfers which happen, w or w'out remains recovered.
But detail on that is another post, another day.
If MoD on death cert = Undetermined or Homicide, LI co is likely to contact LE re investigation, as co does not want to pay $$$ to des-ben, who is later convicted of that murder, as co may not succeed/will likely not succeed in getting $$$ repaid. OTOH, as yrs pass, if LI co pays $$$ to secondary or contingent des-ben's, and if BM the primary des-ben is not charged w murder or is tried and not convicted, LI co could end up being sued in civil court by secondary des-bens and being required to pay $$$ to BM, i.e., LI co paying twice .
Btwn a rock and hard place in this circumstance, LI co can file interpleader*** petition in civil ct. In essence it says, LI co acknowledges the death, the validity of policy, and we want to pay but cannot determine who the approp payee is; Your honor, here's the $$$, so primary and secondary des-bens can figure out in your ct who is entitled.
Remains not recovered?
Yep, those fussy old life ins co's insist on reviewing a death certificate before paying a death benefit.
And before issuing death cert, those nitpicking medical examiners insist on conducting an autopsy.
Which means, regardless of who the designated beneficiary of policy is:
no remains = no death cert = no life ins payment now, or for 5 yrs per CO statute* imo. And slayer statute also applies, even if remains are not recovered, just that the judicial proceeding occurs after ~ 5 yrs.
So 4 yrs + some mo's from now, someone can file in CO ct to have SM declared dead. If successful, then can
1. File in ct to open probate for SM's estate, for distrib of her probate assets, etc.
2. Can also arrange w other financial institutions for payments/transfers of non-probate assets, e.g. (hypo only) -
- at bank, a money mkt acct titled 'SM', designated as Pay on Death (PoD) to Dau M.
- at mutual fund, a blue chip stock fund, acct titled 'SM', designated as Transfer on Death (ToD) to AM.
These non-probate transfers can also happen after a death cert is issued, following recovery of remains.
Again I may be overlooking or misinterp'ing something, so am interested in responses. TiA.
{{{ETA, Yikes, this post almost turned into a book Did I mention it's complicated?}}
_______________________________________________
* CO R.S. Title 15. Probate, Trusts, and Fiduciaries § 15-10-107. Evidence of death or status
"(e) An individual whose death is not established under paragraphs (a) to (d) of this subsection (1) or under section 15-10-106.5 who is absent for a continuous period of five years, during which he or she has not been heard from, and whose absence is not satisfactorily explained after diligent search or inquiry, is presumed to be dead." bbm https://codes.findlaw.com/co/title-15-probate-trusts-and-fiduciaries/co-rev-st-sect-15-10-107.html
** Part of CO Slayer Statute. CO. R. S. Title 15. Probate, Trusts, and Fiduciaries § 15-11-803. "Effect of homicide on... life insurance, and beneficiary designations." sbm Legal hair-splitting: rather than 'murder' CO statute says 'felonious killing."
"(1)(b) “Felonious killing”, except as provided in subsection (7) of this section, is the killing of the decedent by an individual who, as a result thereof, is convicted of, pleads guilty to, or enters a plea of nolo contendere to the crime of murder in the first or second degree or manslaughter, as said crimes are defined in sections 18-3-102 to 18-3-104, C.R.S ."
Or see same at Colorado Revised Statutes Title 15. Probate, Trusts, and Fiduciaries § 15-11-803 | FindLaw
*** Wikipedia, the free encyclopedia Interpleader. See intro and the couple paragraphs in 'Application.' Discusses how LI co may use in situation where designated beneficiary is suspected of killing the person whose life is insured. CO Title 15. Probate, Trusts, and Fiduciaries § 15-11-803(8) provides a remedy allowing a third party to seek the LI payment and (possibly) ultimately secure it.
@ivegotthemic sbm Interesting and complicated issues. Complicated.
Briefly, CO statute* allows ct to presume death after 5 yr absence iiuc, altho some states require longer wait.
Re waiting for trial to commence, then what? Does LI co pay BM; pay dau's; pay estate; or refuse to pay anyone?
Per below, I'd predict LI co would likely file an interpleader action at some point, but I could be wrong. As always, I welcome comments, clarification, corrections, esp'ly from our legal professionals,
law students, and LI professionals. Others too. Jump right in, the water's fine. No chlorine.Not so briefly.
This hypo post discussing life ins azz-umes SM is/was the ins'd life on LI policy/ies, and that BM is the Designated Beneficiary, which are NOT known to be facts.
SM's remains recovered?
Medical Examiner would conduct autopsy, tho already (four mo's post-disappearance), difficult to determine CoD imo (unless remains have somehow been better preserved than usual). Whether remains are located now or 1 - 2 - 3 - 4 or more yrs from now, M/E would conduct autopsy (even on partial skeletal remains) and may find MoD as Undetermined or Homicide.
Once death cert is issued regardless of MoD, after des-ben or atty submits death cert & LI claim forms to LI co, then co is obligated by the LI contract to pay designated beneficiary, unless, a big UNLESS, the law prohibits des-ben from collecting under the state's Slayer Statute.**
If convicted of murdering SM or certain other homicidal crimes or if successfully sued civilly for wrongful death,
(hypo only), BM would be barred from collecting the LI payment, as well as prop, assets, and benefits, he would otherwise receive after her death. See below re non-probate transfers which happen, w or w'out remains recovered.
But detail on that is another post, another day.
If MoD on death cert = Undetermined or Homicide, LI co is likely to contact LE re investigation, as co does not want to pay $$$ to des-ben, who is later convicted of that murder, as co may not succeed/will likely not succeed in getting $$$ repaid. OTOH, as yrs pass, if LI co pays $$$ to secondary or contingent des-ben's, and if BM the primary des-ben is not charged w murder or is tried and not convicted, LI co could end up being sued in civil court by secondary des-bens and being required to pay $$$ to BM, i.e.,
LI co paying twice .Btwn a rock and hard place in this circumstance, LI co can file interpleader*** petition in civil ct. In essence it says, LI co acknowledges the death, the validity of policy, and we want to pay but cannot determine who the approp payee is; Your honor, here's the $$$, so primary and secondary des-bens can figure out in your ct who is entitled.
Remains not recovered?
Yep, those
fussy old life ins co's insist on reviewing a death certificate before paying a death benefit.And before issuing death cert, those
nitpicking medical examiners insist on conducting an autopsy.Which means, regardless of who the designated beneficiary of policy is:
no remains = no death cert = no life ins payment now, or for 5 yrs per CO statute* imo. And slayer statute also applies, even if remains are not recovered, just that the judicial proceeding occurs after ~ 5 yrs.
So 4 yrs + some mo's from now, someone can file in CO ct to have SM declared dead. If successful, then can
1. File in ct to open probate for SM's estate, for distrib of her probate assets, etc.
2. Can also arrange w other financial institutions for payments/transfers of non-probate assets, e.g. (hypo only) -
- at bank, a money mkt acct titled 'SM', designated as Pay on Death (PoD) to Dau M.
- at mutual fund, a blue chip stock fund, acct titled 'SM', designated as Transfer on Death (ToD) to AM.
These non-probate transfers can also happen after a death cert is issued, following recovery of remains.
Again I may be overlooking or misinterp'ing something, so am interested in responses. TiA.
{{{ETA, Yikes, this post almost turned into a book
Did I mention it's complicated?}}_______________________________________________
* CO R.S. Title 15. Probate, Trusts, and Fiduciaries § 15-10-107. Evidence of death or status
"(e) An individual whose death is not established under paragraphs (a) to (d) of this subsection (1) or under section 15-10-106.5 who is absent for a continuous period of five years, during which he or she has not been heard from, and whose absence is not satisfactorily explained after diligent search or inquiry, is presumed to be dead." bbm https://codes.findlaw.com/co/title-15-probate-trusts-and-fiduciaries/co-rev-st-sect-15-10-107.html
** Part of CO Slayer Statute. CO. R. S. Title 15. Probate, Trusts, and Fiduciaries § 15-11-803. "Effect of homicide on... life insurance, and beneficiary designations." sbm Legal hair-splitting: rather than 'murder' CO statute says 'felonious killing."
"(1)(b) “Felonious killing”, except as provided in subsection (7) of this section, is the killing of the decedent by an individual who, as a result thereof, is convicted of, pleads guilty to, or enters a plea of nolo contendere to the crime of murder in the first or second degree or manslaughter, as said crimes are defined in sections 18-3-102 to 18-3-104, C.R.S ."
Or see same at Colorado Revised Statutes Title 15. Probate, Trusts, and Fiduciaries § 15-11-803 | FindLaw
*** Wikipedia, the free encyclopedia Interpleader. See intro and the couple paragraphs in 'Application.' Discusses how LI co may use in situation where designated beneficiary is suspected of killing the person whose life is insured. CO Title 15. Probate, Trusts, and Fiduciaries § 15-11-803(8) provides a remedy allowing a third party to seek the LI payment and (possibly) ultimately secure it.
Last edited:
