Financial Planning Toolkit for Single Women [and the people who love them]

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Are you divorced? Check your beneficiary designations right now!

Recently I heard the sad story of a woman who had recently divorced. Shortly afterward, she fell ill and died prematurely in her late 60’s. Unfortunately, the beneficiary designation on her substantial IRA was her ex-husband. He gets the money. Beneficiary designations alone determine who inherits an IRA when the owner dies.

It does not matter if your ex is a scumbag. It does not matter what your will says.

This applies to IRA’s, 401k/403b plans, life insurance and annuities.

You can check your beneficiary designations by going online if you have online access.  Otherwise you can call the administrator of the plan.

Even if you’re not divorced it is a good idea to check your designations. I once had a client whose life insurance beneficiary was her mother who had long since passed away!

 

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