• 04
  • November
    2011

Proper estate planning means clearly setting forth your wishes and intentions so that, upon your death, it is absolutely clear who your beneficiaries are and who should receive any death benefits.

In an interesting case that recently arose in Virginia, a man died while he was legally separated from his wife. However, the couple had continued under essentially the same living arrangements after the separation that they had maintained during their 20 years of marriage, albeit in separate bedrooms.

The husband supported his wife financially, just as he had while they were married. According to the written agreement documenting their separation, the wife received no spousal support or child support and the husband agreed to pay all of the household expenses and provide financial support for the couple's daughter.

For all intents and purposes, the wife was dependent on her husband's income to pay all of her expenses, including the home mortgage, insurance, utilities, cable and cellphone expenses.

The husband, who was a truck driver, died from a work-related accident in September 2008, just after the couple had legally separated. Under the workers' compensation laws of Virginia as in Florida, dependents are eligible for workers' comp death benefits after a workplace fatality.

When the man's separated spouse sought those death benefits, however, it was unclear whether she could be legally be considered a dependent for the purpose of workers' compensation benefits.

A Virginia court has ruled that the wife will be entitled to her husband's death benefits despite the legal separation because he continued to support her financially. Even though she had waived spousal support in their separation agreement, she was financially dependent on him and should be considered a legal dependant.

Although workers' compensation rulings from other states do not apply to Florida residents, the case provides a good example of why it is so important to clearly spell out your intentions in an estate plan -- and why it is essential to update your estate plan whenever you experience a change in your family relationships. It is difficult to anticipate what issues may arise after your death concerning insurance beneficiaries, inheritances, powers of attorney and other legal tools if you do not keep your plan up to date.

Source: workforce.com, "Deceased Truck Driver's Estranged Wife Entitled to Survivor Benefits," Sheena Harrison, Oct. 14, 2011