Bays v. Kiphart

In 2001, John Bays and Carole Kiphart, who were married, executed reciprocal wills. Carole also obtained two life-insurance policies with the benefits payable to John and their minor son. In 2007, after Carole was diagnosed with cancer, she executed a new will that largely disinherited John. Carole then created two trusts, removed John as a beneficiary on the life-insurance policies, and named the trusts as the beneficiaries. After Carole died, John renounced the will, elected to take his spousal share, and sought to recover the portion of his spousal share that may have been delivered to various legatees under the will and to the beneficiaries of the life insurance policies. John’s theory was that there was fraud on his statutory spousal interest because the beneficiaries of the insurance policies had been changed and the trusts established without his knowledge or consent. The circuit court found in John’s favor with respect to the claimed fraud on his statutory spousal interest. The court of appeals reversed. The Supreme Court affirmed, holding that where a dying spouse exercises her right to change the beneficiary on her life-insurance policy and instead names a trust for the benefit of the minor child of the marriage, the surviving spouse cannot claim fraud on his statutory spousal interest. View "Bays v. Kiphart" on Justia Law