20/03/2018
Too often I have seen wills in which people bequeath monies held in an insurance policy or a training fund (keren hishtalmut) to their heirs. The proper legal way to do so is not through a will but rather by notifying the insurance company and registering those people as beneficiaries. Alternatively, one can send a copy of the will to the insurance company during the testator's lifetime, which also would be considered proper notification.
What happens if a testator doesn't send a copy of his will to the insurance company during his lifetime? Occasionally there is no problem because the registered beneficiaries are also the heirs under the will but that is not always the case.
A case came before the Tel Aviv labor court in which the plaintiff – the deceased's ex-wife – sued a fund claiming that she should receive the monies in the fund because she is the registered beneficiary of the policy. The deceased's heirs - including his son and current spouse - claimed that they should receive the money under the terms of the will.
The judge noted that there are contradictory judgments in the supreme court, some of which say that the will must be sent to the insurance company in the lifetime of the testator in order to be considered notification and some which say that it is enough to send the will afterwards.
In the specific circumstances of the case, including the considerable amount of time that passed from the date the deceased signed the application to join the fund until the signing of the will in 2014 and that the deceased was divorced during this time, the court concluded that the deceased's wish was not to bequeath the monies accumulated in the fund to the plaintiff but to his spouse on the date of his death and son.
Obviously if somebody wishes to change his beneficiaries it is better not to rely on a judgment, which could go either way, and one should properly notify the insurance company.