Divorced? Need to Know: How Your Former Spouse Can Inherit From You
Posted on Apr 28, 2016 12:54pm PDT
As you age, you think you are in good shape. You've completed plans
for your retirement funds and finalized your will. If you have been divorced,
however, you may want to think again. You may have overlooked ways of
how your former spouse can inherit from you!
Wills, for instance, don't have the final say about who gets the assets
in your IRA or 401k. Lack of oversight regarding beneficiaries can result
in your former spouse inheriting that money. In addition there are rules
and laws which can also allow a
former spouse to draw Social Security based on your earnings.
- As changes occur in life, people often overlook changing beneficiaries
on important accounts. Steps to do this may vary depending on changing
employers and rules. For a current employer, simply request a change-of-
beneficiary form from the company's human resources department.
- To change the beneficiary on a 401k also requires a visit to the human
resources department. To leave benefits to someone besides a spouse, you
must present a paper signed by the spouse showing agreement to give up
their beneficiary claim.
- 401ks from previous employers need to be rolled over into an IRA with proper
beneficiary forms.
- All documents should have secondary beneficiaries named in case of death
of the primary beneficiary first.
-
Federal laws also allow former spouses certain benefits from your
Social Security and
Military Retirement.
These areas involving financial planning are just some of the reasons it
is a good idea to retain a good attorney for assistance. They understand
the nuances of the laws regarding overall estate planning including wills,
probate and updating beneficiaries. They know how to avoid disruption
of your estate plans and reduce estate taxes.
The potential complexities of estate planning don't have to create
anxiety for you. We can provide the knowledge, skills and help you need
to assure everything is in order. Be sure to
contact us soon for an appointment for a consultation.