How to Not Leave Money to Your Ex
Although it sounds ridiculous, there are people who die and leave sizeable parts of their estates to their ex-spouses without even realizing it.
However, there are steps you can take to ensure that this blunder does not occur.
Many people end up collecting many retirement accounts and insurance policies in the course of their lives.
These could include pension plan accounts, 401(k), 403(b), Keogh plan accounts, individual retirement accounts (IRA), disability insurance policies, life insurance policies and annuities.
Take time to write down all the retirement accounts and insurance policies you have.
Once you have completed the list, it is time to write down the name of the beneficiaries of each of them.
Remember, it does not matter who you mention on your will because a will goes through probate; but when it comes to insurance policies and retirement accounts, the proceeds go directly to the beneficiaries.
By the time probate gets completed, your assets will already be distributed to the beneficiaries listed.
That is why it is important that you periodically review your accounts and policies.
This will ensure that you have mentioned the right beneficiary for each of them.
Usually a review should be done every year or every two years.
However, you should make sure you do a complete review in case any major event like marriage, divorce, death of spouse, birth of child, loss of parent or change in your state of residence occurs.
Changing beneficiaries is quite easy.
When it comes to IRA, get a beneficiary change form from the financial institution where the account is maintained.
For 401(k) and 403(b), contact the benefits department of your current employer and former employers to execute the changes.
For Keogh plans, get in touch with the plan administrator for changing the names of the beneficiaries.
For insurance policies and annuities, you need to get a beneficiary change form from the issuing insurance company.
Make sure that all the beneficiaries are changed in writing and after signing the beneficiary change form, make sure you send it to the correct institution or company.
Once the change is done, get a copy of the document for your records.
However, there are steps you can take to ensure that this blunder does not occur.
Many people end up collecting many retirement accounts and insurance policies in the course of their lives.
These could include pension plan accounts, 401(k), 403(b), Keogh plan accounts, individual retirement accounts (IRA), disability insurance policies, life insurance policies and annuities.
Take time to write down all the retirement accounts and insurance policies you have.
Once you have completed the list, it is time to write down the name of the beneficiaries of each of them.
Remember, it does not matter who you mention on your will because a will goes through probate; but when it comes to insurance policies and retirement accounts, the proceeds go directly to the beneficiaries.
By the time probate gets completed, your assets will already be distributed to the beneficiaries listed.
That is why it is important that you periodically review your accounts and policies.
This will ensure that you have mentioned the right beneficiary for each of them.
Usually a review should be done every year or every two years.
However, you should make sure you do a complete review in case any major event like marriage, divorce, death of spouse, birth of child, loss of parent or change in your state of residence occurs.
Changing beneficiaries is quite easy.
When it comes to IRA, get a beneficiary change form from the financial institution where the account is maintained.
For 401(k) and 403(b), contact the benefits department of your current employer and former employers to execute the changes.
For Keogh plans, get in touch with the plan administrator for changing the names of the beneficiaries.
For insurance policies and annuities, you need to get a beneficiary change form from the issuing insurance company.
Make sure that all the beneficiaries are changed in writing and after signing the beneficiary change form, make sure you send it to the correct institution or company.
Once the change is done, get a copy of the document for your records.