If you have a will, you probably think you’re all done. Everything is in place.
But that’s not necessarily the case. A story on abcnews.go.com points out that many people are not aware that their wills don’t have the final say about money that is in your retirement plan, such as a 401(k) or IRA.
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The person who is listed as the beneficiary of these accounts gets the money no matter what your will says.
So if you divorce and don’t update the forms for these accounts, your ex gets the money.
So make sure those forms are up to date, the story warns.
If you have an IRA, check with your financial institution that holds the account. If you have a 401 (k), talk to your company’s human resources department. And if you still have an old 401 (k) from a prior employer, roll it over into an IRA.
Also make sure to designate secondary beneficiaries on these accounts in case your primary beneficiary dies before you do.
If you have a will, talk to your estate planning attorney about having your estate be the beneficiary of your retirement plans.
If you have questions about estate planning, feel free to contact us for a consultation at (626) 696-3145.
