Legal Question in Wills and Trusts in Arizona
annuity not in trust, probate required?
Decedant had a Rev. Trust with all assets except an annuity titled to it. The annuity is $60k and according to the annuity company the beneficiary is the Estate. The annuity co. said they need ''court documents naming the executor of the Estate.'' There is a pour over will naming the trust as the beneficiary. Is it possible to obtain from the court this document naming the exector, or will this simply open this whole asset to a full blown probate proceeding? Also, annuity is listed as an asset within a brokerage account, for which there is a Transfer on Death beneficiary listing the Trust. The annuity won't honor that TOD form from the brokerage (different company than the annuity) claiming their contractual obligation is to pay the Estate. Is the annuity co. right to not honor that and hence impose potential probate costs on the estate simply to get the court document naming the executor?
1 Answer from Attorneys
Re: annuity not in trust, probate required?
The brokerage account, with its transfer on death provision, would go to the Trust by operation of law, automatically, and without probate or other intervention. One only need show the brokerage office a copy of the death certificate. If the annuity was not titled in the name of the brokerage firm as an asset in the account, then the question is how is the annuity entitled, that is to say, who is listed as the owner of the annuity on the books of the insurance company, issuer of the annuity contract. If the individual decedent is the entitled owner of the annuity, then a probate would be required, however, if that is the only asset, the probate is informal and not expensive to do.
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