Review Your Beneficiary Designations

From the law firm of Williams, Mullen.

The Supreme Court has ruled that if a former spouse is the named beneficiary of life insurance benefits under FEGLIA, the former spouse receives the proceeds.  Hillman v. Maretta, No. 11-1221 (June 3, 2013).  The Supreme Court held that FEGLIA (the Federal Employees’ Group Life Insurance Act of 1954) preempts Virginia Code Ann. § 20-111.1(A) and (D).  The Virginia statute was written to automatically revoke a beneficiary designation in any contract that provides a death benefit to a former spouse where there was a change in decedent’s marital status.  The statute also provided a separate cause of action against a former spouse if the former spouse received the proceeds as a named beneficiary.  Following the Hillman ruling, the Virginia statute will not operate to revoke or otherwise change a beneficiary designation under FEGLIA.

Korving & Company, LLC

Korving & Company is an investment management, financial advisor, and financial planning firm that specializes in working with retirees, couples who are serious about retirement planning, and women who have recently suffered the loss of a spouse.

© 2021 Korving & Company, LLC