When contesting a beneficiary designation, you can rely on attorney Daniel A. Seigel and the team at the Law Offices of Daniel A. Seigel, P.A. to fight for your interests and uphold the legacy of your loved one.
Contesting a Beneficiary Designation in Boca Raton, Florida
Do you question the validity of a designated beneficiary? Whether one beneficiary designation or multiple beneficiary designations, during an emotionally difficult time, contesting a beneficiary designation can present a significant legal hurdle and create more stress following the death of a beloved person.
A beneficiary dispute occurs when there is a disagreement or contention concerning the recipient(s) of assets an account owner designated in a will, trust, or insurance policy. These disputes often occur due to unclear or outdated beneficiary designations, perceived undue influence, or allegations of fraud. Such conflicts can lead to significant legal challenges and may disrupt the intended distribution of an estate.
To pursue a fair division of assets, maintain family harmony, and uphold the decedent’s wishes, resolving disputes involving designated beneficiaries is critical. However, addressing disputes over beneficiary designations in and around Boca Raton, Florida requires a clear understanding of complex estate laws and their implications. An experienced attorney can help you navigate these disputes as you seek to achieve equitable outcomes and protect the interests of each of the parties involved.
Since founding the Law Offices of Daniel A. Seigel, P.A., in 2012, Attorney Seigel has centered his practice on issues surrounding beneficiary designations, offering comprehensive legal services tailored to meet the needs of each client. He and his team take pride in serving not only as legal advisors to clients, but also as counselors navigating the emotional elements of each case.
When assets are at stake, let us be your trusted partner for contesting a beneficiary designation in Boca Raton. We understand you need a dedicated and experienced legal team to protect your rights and interests. Contact us at (561) 393-6005(561) 393-6005 to schedule a consultation.
Key Takeaways About Contesting a Beneficiary Designation in Boca Raton, Florida
- A beneficiary designation is made by the owner of a bank account, retirement account, life insurance policy, will, or trust(s), as part of their estate plan. The person creating the account names the transfer on death beneficiary and other designated beneficiaries for specific accounts.
- The process of contesting the transfer on death beneficiary, life insurance beneficiary, and any beneficiary named on bank accounts and other beneficiary accounts can be complex and emotionally challenging. A knowledgeable and experienced attorney can evaluate your specific circumstances and determine if valid grounds exist for contesting a beneficiary designation.
- Disputing a beneficiary designation in Boca Raton, Florida requires a thorough understanding of Florida state law. Florida case law allows individuals to contest a beneficiary designation on various grounds, including undue influence on the policyholder to make the beneficiary designation and mental capacity of the policyholder.
- At the Law Offices of Daniel A. Seigel, P.A., we offer personalized legal services to navigate through the complexities of contesting a beneficiary designation.
What are Beneficiary Designations?
Beneficiary designations specify who will receive assets and policy benefits upon the account holder’s death. The account holder generally adds beneficiaries to the following types of accounts:
- A savings account and other bank accounts
- Retirement accounts
- A life insurance policy
- An investment account
Because Florida generally considers a beneficiary designation legally binding, it can supersede any instructions in a will or trust. Therefore, assets like a life insurance policy, retirement account, and payable-on-death account will be distributed according to the beneficiary designation, regardless of what is stated in a will or trust.
However, exceptions exist with valid legal grounds. For example, if the account owner made the beneficiary designation under duress or undue influence, you could contest a beneficiary designation according to state laws. Do you have reason to believe your loved one named beneficiaries under such circumstances? An experienced lawyer can advise you about contesting designated beneficiaries and upholding the intentions of your deceased loved one.
Reasons to Challenge a Beneficiary Designation in Boca Raton, Florida
Beneficiary disputes can arise in various scenarios where individuals are designated to receive assets or benefits after someone’s passing. Common situations include:
- Wills: Disputes often occur when beneficiaries feel that the will does not accurately reflect the deceased’s intentions. This may be due to perceived undue influence, lack of testamentary capacity, or inconsistencies within the document itself.
- Trusts: Conflicts can emerge if beneficiaries believe the trust is being mismanaged or if there is ambiguity about their share. Disputes might also arise if the terms of the trust are unclear or if a trustee is accused of breaching their fiduciary duties.
- Life Insurance Policies: Issues can occur if the policyholder’s intentions are unclear, such as when multiple beneficiaries are named but not specified in detail. Disputes may also arise if a beneficiary designation was changed under questionable circumstances.
- Retirement Accounts: Conflicts might arise when there are discrepancies between the listed beneficiaries on retirement accounts and the intentions stated in other estate planning documents. This can lead to misunderstandings about the rightful distribution of assets.
In each of these scenarios, disputes can complicate the asset distribution process and may require legal intervention to resolve. Addressing these issues promptly is essential for upholding the decedent’s wishes and pursuing an equitable resolution. There are various reasons why someone may want to challenge a beneficiary designation in Boca Raton, Florida, including:
- The estate plan owner was unduly influenced or placed under duress to add the designated beneficiary.
- The owner of the account or policy may have lacked the testamentary capacity to make an informed decision.
- There is evidence that the beneficiary designation was made because of fraud or forgery.
- A more recent will, trust, or other estate planning document exists that conflicts with the designated beneficiary.
Understanding Beneficiary Disputes
A beneficiary designation takes effect after the owner of the account passes away. However, a beneficiary dispute can occur even before the account holder’s death. This scenario unfolds when a conflict exists between the designated beneficiary and potential beneficiaries who believe they should rightfully inherit from the deceased. These disputes may also involve allegations of fraud or undue influence at the time the decedent named beneficiaries.
Resolving beneficiary disputes efficiently is crucial for several reasons. Unresolved disputes can lead to prolonged, emotionally taxing, and financially draining legal battles for every person involved. These conflicts can strain family relationships and create lasting rifts that are difficult to mend. Furthermore, unresolved disputes may delay the distribution of assets, preventing beneficiaries from accessing their rightful inheritance and potentially causing financial hardship.
Efficient resolution honors and respects the decedent’s wishes and works toward a fair and equitable distribution of assets, helping to maintain family harmony and providing closure during a time of grief. By addressing disputes promptly, parties can avoid the escalating costs and stress associated with prolonged litigation, ultimately preserving both relationships and the integrity of the estate.
Payable on Death (POD) Accounts
In Florida, a Transfer on Death (TOD) designation is similar to a Payable on Death (POD) account. However, a TOD is generally used for securities like stocks, bonds, or brokerage accounts. A TOD allows the account holder to designate a beneficiary who will receive the account’s funds upon the holder’s death. This process bypasses probate, making it a straightforward way to transfer assets to the named beneficiary.
- Designated Beneficiary: The account holder names a beneficiary (or beneficiaries) who will receive the funds directly upon their death with the financial institution holding the account.
- Surviving Spouse Rights: Florida law generally respects the TOD designation, meaning the named beneficiary will receive the funds, even if the surviving spouse is not the designated beneficiary. However, there are some considerations:
- If the account was jointly held with the spouse, the surviving spouse would typically retain ownership of the account.
- If the account is solely in the deceased’s name, the TOD designation takes precedence over any claims by the surviving spouse, unless there are legal grounds to contest it (e.g., fraud, undue influence).
- Contesting a TOD Designation: A surviving spouse or other interested party might contest the TOD designation if they believe it was made under duress, fraud, or if the account holder lacked the mental capacity to make such a decision.
- Homestead and Elective Share: While TOD accounts are generally not subject to probate, Florida’s elective share law allows a surviving spouse to claim a portion of the deceased’s estate, which might indirectly affect how other assets are distributed.
Contesting beneficiary designation (i.e., in which the owner of a financial or retirement account specifies the pay-on-death or transfer-on-death beneficiary) is subject to challenge, and ultimately invalidation, on the basis of undue influence and testamentary capacity.
Florida case law provides that beneficiary designations can be challenged and invalidated on the basis of undue influence. In Keul v. Hodges Blvd. Presbyterian Church, 180 So.3d 1074 (Fla. 1st DCA 2015), the court invalidated a pay-on-death (“POD”) designation of the testator’s credit union account when the decedent’s former caregiver used her confidential relationship to obtain the designation. Keul stated that transfer-on-death (“TOD”) and PODs are substitutes that “are subject to challenge on grounds such as undue influence, fraud, duress, and overreaching.” Id. at 1076.
A POD account, although not in the strictest sense a testamentary device and not subject to the formalities required of wills, functions as a will substitute and partakes of many of the same equitable considerations that apply to testamentary transfers. Florida law and policy against abuse of fiduciary relationships apply to contracts, inter vivos transfers, and testamentary transfers, and are properly applied to determine whether a POD designation has been obtained through undue influence.
Keul, at 1077.
Because beneficiary designations are part of the overall investment contract, the same requirements of testamentary capacity apply. State ex rel. Albritton v. Lee, 183 So. 782, 795 (Fla. 1938) (“elements of a contract” are “competent parties, lawful subject matter, valid consideration and agreement of minds”); Hogan v. Supreme Camp of American Woodmen, 1 So.2d 256, 258 (Fla. 1941) (“[a] valid contract requires both capacity of the parties and consideration”).
Contesting a Life Insurance Beneficiary in Florida
Life insurance policies are not always straightforward when it comes to beneficiary designations. In the majority of cases, the life insurance company requires the policyholder’s signature for any changes, including changing designated beneficiaries. However, a few different scenarios could lead to contesting a life insurance beneficiary in Florida:
- Fraud in the Inducement: If someone misrepresents facts or makes false promises to convince the deceased policyholder to designate them as a beneficiary.
- Undue Influence: If someone exerts control over the deceased policyholder and influences them to change their beneficiary designation.
- Lack of Capacity: If the deceased policyholder was a disabled individual who lacked the mental capacity to understand and make decisions regarding their life insurance policy.
- Conflict of Interest: If the designated beneficiary is also a witness or person with interest in executing the policy.
- Disqualification: In some cases, a designated beneficiary may be disqualified from receiving proceeds from a life insurance policy if they are convicted of being responsible for the account holder’s death.
Do I Need an Attorney to Contest Designated Beneficiaries?
Given the intricacies of state laws pertaining to designated beneficiaries, consulting a knowledgeable and experienced attorney is in your best interest. When you work with an attorney, they can evaluate your grounds for contesting a beneficiary designation, assess whether legal grounds exist for a challenge, and gather necessary evidence to support the case.
Daniel A. Seigel has successfully prosecuted numerous cases challenging the validity of beneficiary designations, leading to substantial financial recoveries for clients.
Some highlights include:
- Representing Plaintiffs (siblings) in lawsuit against sister to invalidate POD designations on various investment and bank accounts, leading to substantial settlement.
- Representing Plaintiffs (children of decedent) in a lawsuit against decedent’s caretaker in a case involving online change of beneficiary designations.
When Assets are at Stake, Trust the Law Offices of Daniel A. Seigel, P.A. in Boca Raton, Florida
Contesting a beneficiary designation can create emotional, financial, and legal hardships, but you don’t have to face it alone. The Law Offices of Daniel A. Seigel, P.A. is here to provide the legal guidance and advocacy you need. We understand the devastation the process of contesting beneficiary designations can inflict, and we are committed to helping you resolve these issues with professionalism and integrity.
Contact our Boca Raton office today at (561) 393-6005(561) 393-6005 or complete our online form to schedule a consultation.
When assets are at stake, you can rely on the Law Offices of Daniel A. Seigel, P.A. to fight for your interests and uphold the legacy of your loved ones.