When the California Supreme Court issues an opinion that addresses a community property issue, family law practitioners take note. In the recent In re Marriage of Valli decision, the court held that a $3.75 million whole life insurance policy that singer Frankie Valli purchased from a third-party insurance company, naming his wife as sole owner and sole beneficiary, should be characterized as a community property asset. The Valli decision also involves the issues of transmutation and the application of Evidence Code Section 662. Although straightforward in its holding, Valli is a departure from prior transmutation cases and has possible consequences that could affect estate planning and creditor rights.
