Van Dyck Law

Lady Who Killed Husband Can’t Get His Pension, Court Says

“A woman who stabbed her husband while he slept but was later found not guilty by reason of insanity, isn’t entitled to receive surviving spouse pension benefits.”

A woman judged insane at the time she stabbed her husband is not entitled to pension benefits as his surviving spouse, the U.S. Court of Appeals for the Seventh Circuit recently held in Laborers’ Pension Fund v. Miscevic.

Bloomberg recently published an article, “Woman Who Stabbed Husband While He Slept Can’t Get His Pension.” The article noted that the Employee Retirement Income Security Act (ERISA) generally would require the pension plan to pay the benefits to the woman, because she was the surviving spouse.

However, Illinois has a “slayer statute” that bans a person from financially benefiting from the murder of another.

The federal court of appeals ruled that ERISA doesn’t preempt Illinois’ slayer statute. The Seventh Circuit agreed with the courts that have held that ERISA doesn’t preempt state slayer laws in North Dakota, New York, and Nevada. Most states have adopted these statutes, but the U.S. Supreme Court has chosen not to address the issue at least twice.

The Seventh Circuit noted that the notion that an individual who kills a plan participant can’t recover plan benefits, “is a well-established legal principle which predates ERISA.”

The Seventh Circuit also rejected the woman’s argument that the Illinois state law didn’t apply to her because she was found not guilty by reason of insanity.  However, based on a decision by an Illinois appeals court, the judges held that the Illinois slayer law does apply to bar recovery by individuals who commit a killing but are found not guilty of murder by reason of insanity.

What exactly did the woman do? She intentionally stabbed her husband in his sleep, then she intentionally hit him with a bat to keep him from calling the police, the judges said.

Although she was not able to understand the criminality of her conduct, she intended her actions, the Court of Appeals said.

Judge Joel M. Flaum issued the opinion, which was joined by Judges Michael S. Kanne, and Ilana Diamond Rovner.

Reference: Bloomberg (January 29, 2018) “Woman Who Stabbed Husband While He Slept Can’t Get His Pension”

Suggested Key Terms: Estate Planning, ERISA, Pension, Probate Court, Beneficiary Designations

Understand the Complexities of Remarrying Later in Life

“Remarrying later in life can create several complex financial, legal, and emotional matters that should be addressed.”

About a third of U.S. residents ages 15 and older have been married at least twice, according to the U.S. Census Bureau, and remarriage among Americans ages 55 and older is increasing. At the same time, younger people are becoming less likely to have remarried.

The Flagstaff (AZ) Business News recently published an article, “Financial Issues to Consider in Remarriages,” which suggests that you should be candid about your financial situation. Couples who are marrying for the second (or third) time frequently have financial baggage. You should eliminate issues later in the marriage by having open and honest discussions about assets, debts and obligations. Think about the following questions to get the talks started:

• What financial obligations are we bringing to our marriage?
• How are our credit scores?
• Do we have financial obligations (alimony, child support) to our ex-spouse(s)?
• Do we want to pool our finances?
• Where will we live?
• How will our marriage impact college financial aid for our children from previous marriages or relationships?

It is also important to update life insurance, medical directives and beneficiary designations. If you don’t do this and you (or your spouse) die, part of your estate could go to a previous spouse. If you and your spouse have living wills, health care powers of attorney or healthcare directives, review them with your estate planning attorney to ensure that these documents reflect your current wishes.

You should also consider how remarriage affects your retirement planning, like the benefits your partner may be receiving. These can include a deceased spouse’s social security benefits or pension payments.

Discuss estate planning with your attorney because subsequent marriages can impact estate plans—a common concern among older couples. An older couple is more likely than younger newlyweds to bring property and other valuables into the relationship. They often may want these family valuables to go to their own children from a prior marriage.

Beginning again with a new partner is exciting, even when the new marriage introduces complex financial considerations. Talking to each other, as always, is the key to long-term success.

Reference: Flagstaff (AZ) Business News (October 26, 2017) “Financial Issues to Consider in Remarriages”