¶ 2. The following facts are undisputed. Husband and wife married in December 1973
and separated in 2006. In June 2016, husband filed for divorce. Husband died in September 2016.
During his lifetime, husband had a deferred compensation retirement plan through his work. Wife
was the beneficiary of this account. In June 2015, husband withdrew the money in this account
(approximately $119,000) and rolled it into a traditional IRA managed by defendant LPL
Financial, LLC. Husband designated his niece and nephew as co-primary beneficiaries. Husband
was close to his niece and nephew, and they visited him regularly.
¶ 3. Husband died testate. His will, executed in December 2001, left the rest and residue
of his estate to wife. The probate division allowed the will in October 2016, finding that it was
properly executed and authenticated and that wife consented to its allowance. Wife inherited
husband’s personal estate valued at $95,000 (less a lien against a vehicle), as well as husband’s
probate estate. Wife also obtained sole possession of husband’s primary residence, which the
couple owned as tenants by the entirety at the time of husband’s death.
¶ 4. In June 2017, wife filed this declaratory judgment action, arguing that husband’s
IRA beneficiary designation was void under 14 V.S.A. § 321. Defendants maintained that the
statute did not apply, but even if it did, that the undisputed facts showed that husband did not
violate it.
¶ 5. Section 321 was part of a much larger bill that both restated and revised existing
law. See 2009, No. 55, § 5. Section 321 is entitled “Conveyance to defeat spouse’s interest,” and
it provides: