When you get married, it makes sense to name your spouse as the beneficiary of various financial accounts and insurance policies. Even if you have children, you likely trust that your spouse will use the proceeds of your accounts to their benefit. In the event of a divorce, it is highly important that you revisit all of these accounts and change the beneficiaries to someone other than your former spouse. The following should be addressed when changing beneficiaries:
- Life insurance policies
- Bank accounts
- Investment accounts
- Retirement accounts
To make sure you do not forget to change an account, you should have an experienced attorney take inventory of all of your accounts and policies.
Consequences of Failing to Change a Beneficiary
If you fail to change a named beneficiary before you pass away, your former spouse may inherit the proceeds of your accounts, which you likely would not want. In addition, your children will not have a right to these funds being used for their benefit. This is especially important if your children are from a previous relationship and your former spouse has no legal parental obligations to support them. If your children wish to challenge the inheritance of your former spouse, it may require a costly legal battle. Continue reading