In inheritance law, simultaneous death is a situation in which two people die within a short time and at least one of them would have inherited all or part of the other’s estate. While this is a relatively uncommon event, it poses several legal problems – the largest of these is determining the order in which the wills of the deceased individuals go into effect.
To remedy these difficult questions of law, most US states have adopted some version of the Uniform Simultaneous Death Act of 1940. However, if there is a simultaneous death and each deceased person has an estate plan with clear instructions, the Act will be overridden. Wills, trusts, and insurance papers are all among the types of documents that can supersede the Simultaneous Death Act if correctly worded. While the Act helps the heirs of people who die intestate receive their due property and prevents estate tax from being applied multiple times, it can also create unwanted situations in other cases.
As with most other situations in estate law, having a robust, updated estate plan is the way to prevent and remedy issues relating to the Simultaneous Death Act. At SGW Law, our team has decades of collective experience helping New Jersey residents create the best estate plans for them, even in the most complicated financial and family situations. Our skilled attorneys are always ready to help you find answers relating to the Simultaneous Death Act and other complicated points of NJ estate law. Read more about the Act and how it applies below, or contact our team now for experienced estate planning advice.
What is the Simultaneous Death Act?
The Uniform Simultaneous Death Act was widely adopted when it was first published in 1940. In fact, all 48 US states that existed at that time utilized the Act. There have been amendments, but none that changed the main effects of the Act, and the last one was over 30 years ago in 1993.
The point of the Act is to make sure there is a default rule for the deaths of two people, both named in the other’s estate, that are near enough in time that no one knows which person was deceased first. This most commonly applies to spouses, but it may be relevant for siblings who have no children of their own and in certain other cases.
The main clause states that when two or more people who are each other’s heirs die within 120 hours of one another, and there are no explicit instructions about simultaneous deaths in a will or other binding document, each of the deceased individuals is considered to have predeceased all the others. This may seem paradoxical, so it is best illustrated with examples below.
The Act has relevance both in the probate process and in inheritance itself. In fact, one of its goals was to prevent a single set of heirs from having to go through multiple probate processes. There are some variations between states that come into play during particular, uncommon situations. Therefore, if you are named in the estate of someone who lives in a different state than you, you should ask your attorney about any state law differences that might affect you.
Example Scenarios of the Act in Action
The classic example of a scenario where the Simultaneous Death Act is beneficial is the deaths of a married couple who hold both joint and individual assets. Assume Dana and Edmund, who are married, get into a severe car accident. Dana dies on the scene, but Edmund is rushed to the hospital. However, doctors are unable to save him and he dies the following day. Without the Act, Edmund would have inherited Dana’s property, requiring double the estate tax and probate. However, since both are now considered to have predeceased each other, both Dana’s other heirs (their son and Dana’s niece) and Edmund’s other heirs (their son and Edmund’s brother) directly inherit their respective assets. One-half of the joint assets is distributed to Dana’s heirs, and the other half to Edmund’s heirs.
There are also cases where the Act matters for people who die intestate. Imagine that Frank drowns in a riptide and his son and daughter Gene and Heloise drown attempting to save him. No one involved has a will, but intestacy laws would have provided Gene and Heloise with an equal share of Frank’s estate. However, since they have also died, Frank’s property is distributed directly to Gene and Heloise’s children.
Can the Simultaneous Death Act Be Overridden?
Yes, this law can be overridden as long as an estate plan is written correctly. The Uniform Simultaneous Death Act was intended to create an unambiguous rule for simultaneous deaths of people who did not have a clause for this situation in their wills. In almost all cases, if an estate document specifically mentions what the testator wants after a simultaneous death, that clause will be enforced instead of the Act.
Not only wills, but also trusts, contracts, and designations of beneficiaries can be written to take precedence if there is a simultaneous death. Clear wording, as advised by your attorney, is the best way to ensure your wishes can be followed after you are deceased.
Wills and Trust Clauses
With the assistance of an estate planning attorney, it is easy to write the correct clauses into your will or trust to cover the possibility of simultaneous death. It’s usually necessary to be explicit and name the situation, such as by writing in a will to the effect of “In the event of my spouse, Albert, and I dying simultaneously, I direct that my primary house pass to my son Ben and my vacation house pass to my daughter Clarice.”
The type of language you’ll need to use in a trust to account for a simultaneous death will vary depending on the type of trust. A trust concerning the ownership of a business that does not name your spouse might need less language about simultaneous death, because trusts do not need probate. However, a special needs trust dealing with the guardianship of a vulnerable family member would be likely to involve your spouse, and therefore simultaneous death clauses are advisable.
Beneficiary Designations
Life insurance policies and retirement accounts, whether from international financial management companies or local insurers, almost all allow custom beneficiary rules. The law treats beneficiary designations very seriously and thus they can supersede even a will, regardless of a simultaneous death situation. Most financial instruments of this kind have a 30, 60, or 90-day survivorship clause, meaning that if the beneficiary does not outlive the policyholder for at least that much time, they will be “passed over” at their death and their own heirs will receive the benefit directly. Despite the precaution of survivorship requirements, you should take advantage of whatever beneficiary customization the financial company allows in order to account for all possibilities, just as with any other estate document.
State Law Differences
Despite the word “Uniform” in its name and the fact that it is used in some form across the country, the Uniform Simultaneous Death Act is not a federal law. It was just agreed upon and passed into law by most states, and only 19 states use the exact text in its current version. This means there are some modifications made by some states not used by others. Your local statutes are what is most important – the team at SGW Law has deep knowledge of all aspects of New Jersey estate law, including the Simultaneous Death Act in NJ.
Why Overriding the Act Matters in Estate Planning
The Uniform Simultaneous Death Act is an important landmark in estate law and has been a boon to many families. However, it sets default rules that are out of individual control. Therefore, there are a number of reasons why you might want to override it in your own estate plan. Primarily, you will want to ensure your assets are distributed the way you want them to be, and therefore avoid any possible disputes between your heirs.
Dividing assets based on specific instructions rather than a general rule is the best way to protect the futures of members of a blended family and disabled or otherwise vulnerable family members. Finally, under consultation with both your financial advisor and your attorney, you can also gain tax advantages and make the probate process quicker.
How to Protect Your Wishes Legally
Expressing your wishes for your estate to your attorney is a crucial step toward a well-written estate plan. A lawyer will be able to translate your ideas into legal language that is enforceable and protects your family and any other heirs.
Once you have a complete estate plan, however, you should continue consulting your attorney at least every 3 to 5 years, or as soon as possible if you undergo a major life event. This is so you can regularly review and update your will, trusts, and beneficiary designations. It’s important to make sure their wording is aligned, and especially that designations on financial accounts or insurance policies don’t contradict your will. You know your own family dynamics and finances best, so you shouldn’t be afraid to openly discuss unusual situations or potential conflicts with your lawyer – part of their role is to help you find a workable solution and incorporate that into your documents.
Take the Next Step in Protecting Your Legacy
If you are creating or updating your estate plan in New Jersey, you will need an experienced attorney who specializes in this area. At SGW Law, our team of estate attorneys is ready to help you help your loved ones and secure their future. Whether you have questions about the Uniform Simultaneous Death Act, the difference between kinds of trusts, how to make plans for your future healthcare, or any other aspect of estate planning, we’re ready to answer. Get in touch with our skilled legal team today.