You Updated Your Will, But Did You Update Your Beneficiaries?

Consider this example:

John names his wife, Susan, as the beneficiary of his employer’s 401(k).
John and Susan later divorce.
John marries Mary.
John creates a new Georgia will leaving his estate to Mary.
John never changes the beneficiary on his 401(k).

Who receives the retirement account?

In many cases, the beneficiary designation on the retirement account, not the will, controls. Federal law generally governs employer-sponsored retirement plans such as 401(k)s, and special rules regarding spouses may also apply. The specific plan documents and circumstances matter, but simply changing your will does not automatically update your retirement account beneficiary.

The same issue can arise with other assets that pass outside of your will, including:

• IRAs and other retirement accounts
• Life insurance policies
• Annuities
• Payable-on-death bank accounts
• Transfer-on-death investment accounts

Estate planning involves more than signing a will.

Beneficiary designations should be reviewed following major life events, such as marriage, divorce, the birth of a child or grandchild, a serious diagnosis, or the death of a loved one.

At Hurley Elder Care Law, we encourage clients to periodically review not only their estate planning documents but also how their assets are titled and who is named to receive them. A little planning today can help ensure that your assets ultimately go to the people you intend.

Get started with your estate planning today. Call Hurley Elder Care Law at 404-843-0121 to schedule an appointment. Our experienced team is ready to assist you at our four convenient locations in Atlanta, Duluth, Newnan, and Woodstock. Virtual appointments are also available.