Lessons from the Reiner Case
I recently read that Nick Reiner’s “Hollywood” attorney resigned and has been replaced with a public defender. The assumption is that the other 2 children of the Reiner estate are not willing to pay for the defense of their brother. So I was curious – do they have to contribute to his defense? is he entitled to any money as a child of the deceased as a beneficiary of the Will or trust of the Reiners? Most people assume that a murderer can’t inherit from the person they killed. That is generally correct— how a Court gets there, and the consequences for the rest of the family, vary significantly from state to state. Because Texas has very limited Slayer’s Statute our law firm formulated a much broader Slayer’s clause we can include in our Wills and Trusts. But California has a comprehensive Slayer’s Statute so I thought a comparison of the Texas and California statutes might be interesting. Inquiring minds want to know and all that!
What Is a Slayer Statute?
A Slayer Statute prevents a person who intentionally and unlawfully causes another’s death from benefiting financially from that death. These laws exist to ensure that no one profits from their own wrongdoing.
Every state recognizes this concept although the statutes vary from state to state.
Texas vs. California: A High-Level Comparison
Texas
Texas has one statute that deals with this scenario and it is dismal. It specifically states that “If a beneficiary of a life insurance policy or contract is convicted and sentenced as a principal or accomplice in willfully bringing about the death of the insured, the proceeds of the life insurance policy or contract shall be paid in the manner provided by the Insurance Code.” Under this statute the killer may not receive his or her share of the life insurance proceeds, but nothing in the statute prevents a killer from inheriting under a Will, trust or through intestacy. Fortunately, several Texas courts have stepped in and applied “equitable” remedies—such as imposing a constructive trust on the assets so that the killer cannot receive the proceeds. However, there are several cases where equity was impossible to apply, for example, in one Texas case a killer pled insanity and was not “convicted” and was able to receive his inheritance.
The Texas approach means:
- The rule often requires a criminal conviction in order for a Court to take any action
- To have the Court apply these equitable principles requires additional legal action by the other beneficiaries which costs additional money and significant time
- Estate administration is much slower and more complex for surviving family members
California
California has multiple statutes on this topic. Its Slayer Statutes are among the most comprehensive in the country. A person who unlawfully kills another is treated as if they predeceased the victim, and the law applies broadly to nearly all types of property disposition, including Wills, trusts and beneficiary designations. In California, Code article 259 states in part “…if it is proven by clear and convincing evidence that the person [a beneficiary] is liable for physical abuse, neglect, or financial abuse of the decedent, who was an elder or dependent adult shall be deemed to have predeceased the decedent.” These type of actions are not contemplated by Texas courts at all.
The California approach generally results in:
- Automatic protection for alternate beneficiaries
- Faster, cleaner estate administration
- Less uncertainty and no protracted litigation for families
Why This Matters: The Reiner Example
In the Reiner case, Nick, under Texas law likely would have access to his share of his parents’ estate (or trust) to pay for his defense, however under California law Nick may be automatically barred from receiving assets due to his actions. This means that his parents’ estate (or trust) would not have to distribute any assets for his defense.
The Planning Takeaway
No estate plan is created expecting the worst—but good planning prepares for it.
For families with concerns about family members and children with mental issues, drug dependency, anger management problems or friends of family members or children with these issues it is critical that your estate plans do not rely solely on state default laws. Well-drafted documents can clearly disinherit a wrongdoer, define what happens next, and reduce the burden on loved ones during an already difficult time.
Thoughtful estate planning ensures your wishes are honored, protects innocent beneficiaries and avoids uncertainty when it matters most.
If you have questions about how your estate plan would work or concerns about someone you love, now is the right time to review your planning. Call our office to schedule your complimentary appointment at 512-263-5400 or email info@tcslawgroup.com. Your attorneys at Thrash, Carroll & Sanchez Law Group are ready to help.
By: William Harlow, Attorney at Law for Thrash, Carroll & Sanchez Law Group
Licensed in California and Texas