Roth & Company, PC Tax Update Blog

Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

Forget to update your beneficiary designations. Your Ex will thank you.

November 30, 2011

Paul Neiffer has important advice for folks who have taken more than one dip in the marital pool:

I was talking with one of my CPA friends and he had a client whose husband had just passed away. This was the second marriage for both and there was a substantial life insurance policy on his life. He told his wife that when he passed away, the proceeds would go to her and she would have a very comfortable retirement. Well, as you can probably guess, when he passed away and she went to the life insurance agent who reviewed the policy, they found out that the husband had never changed the beneficiary from the first wife. There is now a substantial chance that all of these proceeds will go to the first wife, not the current wife.

If you get a new model spouse, make sure you note the upgrade in your insurance policy and pension plan beneficiary designations. Unless, of course, you really want the Ex-spouse to get that cash.

Tags: .

      Bookmark: del.icio.usDiggreddit

TrackBack

Listed below are links to weblogs that reference Forget to update your beneficiary designations. Your Ex will thank you. :

» Beneficiary? Don't Fuggedaboutit! from InsureBlog
...our favorite Tax Blogger, Joe Kristan, has a timely reminder on why it's so important to ... update the benificiaries of your life insurance policies. [Read More]

Comments

But only if by "a substantial chance" you mean "100% certainty."

Been there, done that (not personally - a client).

Post a comment





Email: jkristan@rothcpa.com  •  Phone: (515) 244-0266
All content © Roth & Company, P.C.  •  Powered by Movable Type  •  Site by Sekimori Design