The ‘Slayer Rule’ and Its Impact on Beneficiaries

When planning your estate or naming a life insurance beneficiary, there’s an important but rarely discussed legal principle you should know about — the Slayer Rule. While it may sound like something from a crime novel, it’s a real rule with serious consequences. Understanding it can protect your estate and ensure your wishes are honored.

Let’s break it down in plain English, and explore how it could directly affect your beneficiaries.

What Is the Slayer Rule?

The Slayer Rule is a legal doctrine that prevents someone from receiving a financial benefit — like a life insurance payout — if they were responsible for the death of the person whose policy or estate it was. In simple terms: you can’t profit from a crime, especially murder.

For example, if a person is named as the beneficiary on a life insurance policy, but later it’s proven they intentionally caused the insured’s death, the court will block them from receiving any proceeds.

Why the Rule Exists

At its core, the Slayer Rule is about justice and fairness. It upholds the basic moral principle that no one should benefit financially from a wrongful act, especially one as serious as homicide.

Without this rule, someone could intentionally cause harm to a family member just to receive their inheritance or life insurance benefits — an idea completely opposed to the spirit of estate planning and financial protection.

What Counts as “Slaying”?

It’s not just about clear-cut murder. Courts typically apply the Slayer Rule in cases of:

• First-degree or second-degree murder

• Voluntary manslaughter

• Conspiracy to kill

• Aiding or abetting in the death

In most states, a criminal conviction is not always required. Even in civil court, if a “preponderance of evidence” suggests the person was responsible for the death, they can still be disqualified as a beneficiary.

How Life Insurance Companies Respond

If a policyholder dies under suspicious or violent circumstances, life insurance companies usually pause the payout and wait for the legal process to unfold. Once the investigation is complete, the insurer will either:

• Pay the contingent beneficiary, or

• Distribute the benefit to the estate if no alternate is listed

That’s why having a secondary (contingent) beneficiary is crucial — especially if your primary beneficiary is someone close to you, such as a spouse or family member.

Estate Planning Considerations

The Slayer Rule highlights the importance of thoughtful and strategic estate planning. Here are some smart steps to take:

• Name a backup beneficiary

• Review and update your policy regularly

• Work with a professional who understands your state’s laws

• Be aware of high-risk relationships or tension among heirs

If you’re concerned about family disputes or unusual circumstances, consider setting up a trust to control the distribution of your assets more securely.

Can the Slayer Rule Be Challenged?

In rare cases, yes. If the person accused of causing the death was found not guilty or if there’s overwhelming evidence proving their innocence, they may be reinstated as the rightful beneficiary. But these cases are complex and vary by state.

The bottom line? Intentional wrongdoing will almost always disqualify someone from inheriting.

Protecting Your Legacy Starts Now

Estate planning and life insurance decisions aren’t just about numbers — they’re about protecting your loved ones and your intentions. At Toby Hansen Agency, we help clients navigate the complexities of life insurance, estate planning, and beneficiary strategies.

We search nearly 100 carriers to find the best coverage at the lowest price, with smart planning advice to help you avoid costly legal pitfalls like the Slayer Rule.

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