Though the thought is a terrible one, it’s also not unheard of: a couple dies together in a horrible accident with no will to handle the distribution of assets.
While the case is certainly tragic and estate planning would likely not be the first issue to spring to mind, the fact is the case presents a special challenge and has specifically been addressed under Minnesota law. To find out more about the subject, continue reading about simultaneous death.
What is simultaneous death?
The best illustration of the concept comes from a very sad case out of 1999. That year John F. Kennedy, Jr. and his wife Carolyn Bessette died together in a small plane accident. Though the case may seem like an especially unusual one, the fact is that simultaneous deaths of husbands and wives are not as rare as many people might imagine. Couples die together in airline crashes, car accidents, house fires and a variety of other depressing scenarios. For many years such deaths posed inheritance issues, since it may not always be clear which spouse died first.
Why does simultaneous death matter?
The reason the order of death matters is that the vast majority of couples hold their property in joint tenancy. This means that when one spouse dies, the estate generally passes directly to the surviving spouse. Other assets, including life insurance and retirement accounts, contain clauses that allow spouses to be listed as beneficiaries to inherit property quickly. This all falls apart though when it cannot be determined which spouse died first, throwing the issue of which party receives the others’ assets into doubt.
An example of trouble
Not only was the issue of simultaneous death difficult to determine where assets should be directed, another issue is that it would result in inheritance having to be transferred through the probate system two different times, creating added expenses and inefficiencies. A good example of this is if a couple, C and D, are involved in an accident. Let’s say C dies first and D dies the next day. Because D survived longer, D would inherit C’s estate and D’s heirs would then inherit the combined estate afterward. This would lead to an increase in legal costs and subject the estate to taxation twice.
What has been done about the issue?
To remedy this potential problem, the Uniform Simultaneous Death Act was passed in 1940. Minnesota implemented its own version, found in Section 524.2-702 of Minnesota Statutes. The law states that if two or more people die simultaneously due to an accident, within an 120-hour period, with no will, their assets are passed to relatives rather than from one estate to another. The Act basically ignores the reality of the accident and treats each spouse as if they predeceased one another. Under the Act, this means that neither party would inherit the other’s estate; the couple’s heirs would simply inherit both estates at once.
What can you do about it?
Though the Uniform Simultaneous Death Act was a good thing, it too created some inefficiency. Specifically, the Act means that a couple’s retirement accounts, insurance proceeds and other assets are split into two piles and must then go through probate separately. To save substantial hassle, couples can plan ahead. Start by drafting a will that contains a clause that specifically decides who will be considered the survivor in the event of a simultaneous death. This can reduce a bunch of duplicative work and simplify the inheritance process.
An experienced Minnesota estate-planning lawyer can help walk you through the process of establishing or altering a comprehensive estate plan. For more information on estate planning in Minnesota, along with a variety of other topics, contact Joseph M. Flanders of Flanders Law Firm at (612) 424-0398.
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