CALIFORNIA FAMILY LAW
...Employment Benefits-Pension/Disability
......Terminable Interest Rule
7 Cards On This Topic:

Terminable interest rule abolished by statute.

ERISA preempts state law allowing nonparticipant spouse to transfer by testamentary instrument an interest in undistributed pension plan benefits.

Terminable interest rule applied retroactively to benefit estate of W who died four years before H's retirement. Arguments against retroactivity rejected.

Nonemployee spouse predeceasing em/ee cannot bequeath c/p interest in UC pension plans; FC 2610 inapplicable when nonem/ee spouse dies before property divided in divorce or legal separation.

Retroactive application of terminable interest rule made nonemployee spouse's interest in retirement plans taxable upon death.

Terminable interest rule abolished retroactively.

Terminable interest rule discussed.