Why Wiley’s Words Didn’t Matter: Oral Will Ruled Invalid

What did Wiley Want to Happen?

Wiley  had three kids Curtis, Pam and Janet. He also had a stepson named Jeffery. Wiley opened a bank account and designated that upon his death the funds should be paid to his son Curtis.  Court recited the facts as follows:

At some unspecified time, or times, Father told Curtis and Pam that he wanted his assets divided equally among his “kids.”   Insofar as Pam knew that included Jeffrey.   A document signed by Father, but which did not qualify as a last will, was discovered.   This document states that Jeffrey is a stepson and expresses Father’s desire that Jeffrey receive $100.00 and that the other children share equally in his assets.

Wiley died and Curtis divided the funds between himself Pam and Janet but gave nothing, not even the $100.00, to Jeffery.

How Spoken Words Caused An Inheritance Dispute in Probate Court

Jeffery sued to get his inheritance. On appeal the Court recognized that oral will must be presented in probate court.  This was not done nor would it have been worthwhile to present. Oral Wills or “Nuncupative Wills” are only available in extremely limited situations for service-members serving and dying in a conflict.  In fact, the conditions are so stringent that Oklahoma has no reported cases of a valid soldier’s will.  Wiley obviously did not meet any of the criteria. What was the end result? Jeffery received nothing.

Did the Bank Account Disrupt the Estate Plan?

The court also noted that even if the oral expressions were a valid Will, it could not change the payable-on-death designation on the bank account.  In other words, since Wiley designated that Curtis as the payable-on-death beneficiary it would not matter what any Will said.  Curtis did not have to share the funds with his sisters.

From facts in the case it appears that Wiley wanted to provide something to Jeffery.  But what he did was entirely ineffective.

Did Wiley Understand What He Did?

It is difficult to say what Wiley’s wishes were.  A payable-on-death bank account is paid to the beneficiary named in it.  It does not matter what any other document, will or trust says.  It certainly does not matter what owners says about the money in the POD account.  The cold hard facts are that the bank is obligated to pay the money to the beneficiary who can do whatever he wishes with the funds.

Read the case In re Wiley .

Lessons from the Wiley  Case:

• In order to have a valid Will it must meet the statutory requirements. Even a signed document may not do the trick unless it complies with the law.
• Oral expressions, wishes, instructions or demands are meaningless as they pertain to your estate plan.
• It is important to understand how beneficiary and payable-on-death designations affect your distribution plan.

What Should You Do to Make Sure Your Assets are Distributed According to Your Wishes?

Knowing how probate, non-probate, beneficiary designations, deeds and other benefits are structured determine how, to whom and when your assets will be distributed is important.  It is important to self-educate seek competent advice.  Be sure to download my Estate Planning Answer Guide.

Every case is different and laws vary by State.  Anyone with a will, trust or inheritance dispute should have their facts reviewed by an attorney.  This case describes the laws and facts presented in an Oklahoma Court.