Here are a couple of examples where missing or ‘wrong’
beneficiary listings can be a hang up for your decedents.
No named beneficiary. These days with paperless documents,
most insurance agents can’t click OK on your policy if the
beneficiary field is left blank. Older policies – not the case. You
may have left it blank because you were in a rush, didn’t see it,
or thought you would fill it in later. Now is later. Without a named
beneficiary, an account will need to go to probate court, where a
judge will decide who gets the money.
Former spouse named as beneficiary. Face it, surviving a
deceased spouse or divorcing a living one involves tons of legal
paperwork and decisions. One many people forget during this life
change is to go back and designate another beneficiary. Ex-spouse
doesn’t mean ex-beneficiary… a view that was recently upheld by
the Supreme Court. Named beneficiaries get the proceeds, no matter
how estranged the relationship. Imagine the family chaos following
your passing if the ex got the money you wished for your current
spouse or your children.
It’s a good idea to review three things: Old pensions in which you
are vested, 401(k) plans still sitting at former employers, and every
life insurance policy still in force with your name on it. By the
way, that includes annuities, which are life insurance contracts.
Wynn at Law LLC likes to have clients review beneficiary information
after every life change such as retirement, the births of children or
grandchildren, marriage or divorce. You want your money to go where
you want it to go.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
Photo by Robert Churchill., used with permission.
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