In 2008, Brian Petronaci (“Brian”) and Laurie Voigt (“Laurie”) were married. They divorced in 2015, and Brian died three years later.
As part of their divorce, the couple entered into a marital settlement agreement (“MSA”) without the assistance of legal counsel. That MSA included a “Waiver of Employee… Retirement Benefits,” in which each spouse waived any right or claim to the other’s retirement benefits.
At the time that Brian died in 2018, Laurie was still listed as the beneficiary of Brian’s 401(k) retirement account, and the plan administrator distributed the proceeds (approximately $116,000) to Laurie. Brian’s parents, who were the co-administrators of his estate, then sued Laurie to recover those proceeds. In response, Laurie claimed that the federal Employee Retirement Income Security Act (“ERISA”) dictated that Laurie was the only one entitled to the 401(k) proceeds. She also claimed that she and Brian never intended Brian’s 401(k) to be included in the MSA waiver, that she and Brian were in the process of reconciling at the time of his death, and that Brian told her he wanted her to be the beneficiary of this asset before he died.
The judge considered the parties’ submissions and oral argument, and then granted Brian’s parents’ application, ordering Laurie to surrender the 401(k) proceeds. Laurie appealed.
The Appellate Division affirmed the trial court’s order. It found that the MSA waiver was unambiguous, and there was no evidence within that document to support Laurie’s claim that the waiver clause did not apply to Brian’s 401(k). Therefore, the court found the MSA waiver to be valid and enforceable. Because the MSA was clear and unambiguous, the court refused to look past the “plain meaning” of that document to consider extrinsic evidence regarding Brian’s intent or the couple’s alleged reconciliation.
The court also rejected Laurie’s claim that ERISA preempts New Jersey’s “revocation on divorce” statute, which states that a divorce revokes any revocable disposition of property. The court found that ERISA affects the plan administrator’s duty to release funds to a designated beneficiary, and that the 401(k) administrator properly distributed the funds to Laurie. However, ERISA did not prevent the estate from recovering those funds from Laurie, to enforce the MSA waiver. It quoted a Third Circuit opinion, which held that “permitting suits against beneficiaries after benefits have been paid does not implicate any . . . core objective of ERISA.”
A copy of In re Estate of Petronaci can be found here.
Categories
- Affordable Care Act
- Alzheimer's Disease
- Arbitration
- Attorney Ethics
- Attorneys Fees
- Beneficiary Designations
- Blog Roundup and Highlights
- Blogs and Blogging
- Care Facilities
- Caregivers
- Cemetery
- Collaborative Family Law
- Conservatorships
- Consumer Fraud
- Contempt
- Contracts
- Defamation
- Developmental Disabilities
- Discovery
- Discrimination Laws
- Doctrine of Probable Intent
- Domestic Violence
- Elder Abuse
- Elder Law
- Elective Share
- End-of-Life Decisions
- Estate Administration
- Estate Litigation
- Estate Planning
- Events
- Family Law
- Fiduciary
- Financial Exploitation of the Elderly
- Funeral
- Future of the Legal Profession
- Geriatric Care Managers
- Governmental or Public Benefit Programs
- Guardianship
- Health Issues
- Housing for the Elderly and Disabled
- In Remembrance
- Insolvent Estates
- Institutional Liens
- Insurance
- Interesting New Cases
- Intestacy
- Law Firm News
- Law Firm Videos
- Law Practice Management / Development
- Lawyers and Lawyering
- Legal Capacity or Competancy
- Legal Malpractice
- Legal Rights of the Disabled
- Liens
- Litigation
- Mediation
- Medicaid Appeals
- Medicaid Applications
- Medicaid Planning
- Annuities
- Care Contracts
- Divorce
- Estate Recovery
- Family Part Non-Dissolution Support Orders
- Gifts
- Life Estates
- Loan repayments
- MMMNA
- Promissory Notes
- Qualified Income Trusts
- Spousal Refusal
- Transfers For Reasons Other Than To Qualify For Medicaid
- Transfers to "Caregiver" Child(ren)
- Transfers to Disabled Adult Children
- Trusts
- Undue Hardship Provision
- Multiple-Party Deposit Account Act
- New Cases
- New Laws
- News Briefs
- Newsletters
- Non-Probate Assets
- Nursing Facility Litigation
- Personal Achievements and Awards
- Personal Injury Lawsuits
- Probate
- Punitive Damages
- Reconsideration
- Retirement Benefits
- Reverse Mortgages
- Section 8 Housing
- Settlement of Litigation
- Social Media
- Special Education
- Special Needs Planning
- Surrogate Decision-Making
- Taxation
- Technology
- Texting
- Top Ten
- Trials
- Trustees
- Uncategorized
- Veterans Benefits
- Web Sites and the Internet
- Webinar
- Writing Intended To Be A Will
Vanarelli & Li, LLC on Social Media