The person in charge of distributing the trust property is called the trustee. As long as two people are legally married, both parties have equal rights to the control and management of community property. In states that have laws automatically invalidating an ex-spouse as life insurance beneficiary, if the policy was a benefit of employment, the ex-spouse remains beneficiary if still named. As explained previously, this is not the case in California. After divorce, the policyholder will most likely retain his/her term life policy and be allowed to name new beneficiaries in place of his/her ex-spouse. Here are the basics: A trust creates a fiduciary relationship between you as the beneficiary and the trustee. In these cases, the policy’s cash value will be divided between the spouses, but ownership of the policy will usually transfer to the spouse listed as beneficiary. Plymouth Meeting, PA  19462, Legal Disclaimer 1500 Sansom Street, Suite 200 In California, the trustee is required to provide an annual accounting to “each beneficiary to whom income or principal is required or authorized in the trustee’s discretion to be currently distributed,” according to state probate code.Additionally, beneficiaries are entitled to an accounting of the trust in the event the trust is terminated or the trustee changes. The value of an estate is determined by the value of any life insurance or retirement benefits paid to it as well as its real and personal property on the day of the individual’s death. Were you delayed or denied payment of the death benefits? ---YesNo Maybe. As an estate-planning tool, a trust manages the distribution of a person’s property and assets by transferring its benefits to different people named in the trust. The trustee should act impartially between the competing interests of the various beneficiaries. There are exceptions, however, in community property states under certain conditions. However, separate property state lawin California excludes from community property, any property: 1. A trustee must act solely in the best interests of the beneficiary when handling trust property. While some states have enacted laws automatically revoking ex-spouses as beneficiaries after divorce, California has not.

Insurance companies, agents and brokers are required to comply with these insurance laws. In California, the trustee is required to provide an annual accounting to “each beneficiary to whom income or principal is required or authorized in the trustee’s discretion to be currently distributed,” according to state probate code. Only the policy owner can change a life insurance beneficiary. If the insured purchased term life insurance before the marriage, then married and died while married, the spouse would be entitled to the portion of 50% of the death benefit calculated from how much of the policy premiums were paid before the marriage, and how much were paid after. In California, ERISA may dictate that the death benefit is paid to someone other than the spouse despite community property laws. If this is the case, that beneficiary is treated as if he or she predeceased the decedent and the contingent beneficiary receives the property instead. 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