Recouping assets after ‘fraud on the spouse’
Q: I gave my husband my earnings all our married life, and he took care of our finances. I cared for him when he was sick, even while I was still working, until his death. Now I find he had styled accounts in his name only, and the beneficiaries of these accounts were his children from a prior marriage. Do I have any recourse?
A: Yes, you do.
The argument you would make is that his actions that resulted in the accounts passing to his children amounted to “fraud on the spouse.”
Texas courts would look at all of the facts and circumstances, including the value of the accounts in relation to his and your entire estate, and whether you acquired enough other assets from the remaining property he and you owned.
If you are successful, a court would likely allow the children to keep half of the accounts, as this would represent your husband’s community property half, but the other half of the accounts would be awarded to you. Other remedies could be possible as well.
You need to hire an attorney as soon as possible to begin the necessary legal proceedings. Be sure to act quickly, before his children spend all the money.
Q: My mother passed away in September 2017, and I was the sole beneficiary of her life insurance policy. My oldest sister has included the insurance proceeds I received as part of my mother’s total asset picture, reducing what I was given under her will (which said nothing about the life insurance). Was that legal under Texas law?
A: No, it was definitely not legal.
The life insurance you received was separate from the property passing under your mother’s will. You are still entitled to your share of your mother’s “probate” estate, which is the property passing under her will. Whatever you received in life insurance proceeds is above and beyond your share of the rest of her estate.
You need to ask your sister to allocate the right amount of property to you, and if she refuses, you should hire an attorney to force her to do what is right.
Q: My niece passed away in December 2019 without a will. She lived in Houston. Her only asset was a checking account with a few thousand dollars in it. How can the family access the funds? I have the death certificate, but because of virus precautions, I would like to use as few signatures and notaries as possible.
A: The easiest way is to use a Small Estate Affidavit.
This form, along with detailed instructions, can be found online at www.cclerk.hctx.net/ forms/10222.pdf.
You should be able to handle this yourself without the assistance of an attorney.
The information in this column is intended to provide a general understanding of the law, not legal advice. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances. Ronald Lipman of the Houston law firm Lipman & Associates is board-certified in estate planning and probate law by the Texas Board of Legal Specialization. Email questions to stateyourcase@ lipmanpc.com.