Tuesday, April 2, 2013
What a difference a day makes
Posted by Lynne Butler
A recent article in www.advocatedaily.com talks about a case in which this clause was included in a will, and the spouse died one month later. The court had to decide whether the spouse inherited the estate or not, as there would be a different set of beneficiaries depending on the outcome.
Click here to read the article by Paul Trudelle.
To understand why a clause like this is used in a will, consider a situation in which you and your spouse are involved in a car crash. Your spouse dies on the scene. You die three days later. Your spouse's estate passes to you, then three days later your estate passes to your beneficiaries. Without a survivorship clause, you could end up with two separate estates, two probates and two sets of costs because of that three-day gap.
The survivorship clause is intended to ensure that in a situation like this, your estate and your spouse's estate may be treated as if they were only one estate for the purposes of distribution.
Keywords survivorship clause