Gaethje v. Gaethje
In Gaethje v. Gaethje, 7 Ariz. App. 544, 546, 441 P.2d 579, 581 (1968), the Court was asked to determine the validity of a life-insurance policy beneficiary designation which named a son as the beneficiary instead of the deceased's spouse.
The Court held that when a deceased spouse has made a testamentary or non-testamentary provision for the surviving spouse, under which the surviving spouse receives at least half of the community property, "then there has been no 'fraud' upon the surviving spouse's rights and the designation of beneficiary should stand effective." Gaethje, 7 Ariz. App. at 547, 549, 441 P.2d at 582, 584.
However, if the surviving spouse did not receive half the community property, then "there would be a constructive fraud upon the surviving spouse's rights and the designation would be ineffective to the extent of such constructive fraud." Id. at 549, 441 P.2d at 584.