Mr. Big Left Money To His Ex-Wife: Don’t Accidently Leave Money To Your Ex-Spouse

A surprising scene in the TV series And Just Like That...” occurs after Carrie Bradshaw's husband, known as Mr. Big, dies at the end of the first episode, and at the reading of the will she discovers he left substantial money to his ex-wife! Life moves fast, and we sometimes forget to do the tasks we know need to be done. We get caught up in our daily lives and get distracted. Once you remarry, you probably meant to update your will and retirement beneficiaries - but then the honeymoon happened, then you had to go back to work and get caught up on things, then the dog died… it’s easy to let life get in the way of important tasks. 

Most of us have or should have a will. If not, read about What Happens If You Die Without a Will in Georgia.

If you already have a will, it’s always good to update it periodically. Imagine if you are in a deadly accident and never got around to updating your will - if your ex-spouse is still the beneficiary of your assets and estate, you could be accidentally leaving money to them.

When you work with an experienced estate planner, they can remind you to look at your other financial holdings when you update your will. Some financial products that you may also need to update are:

• Retirement accounts such as a 401(k) or an IRA

• Life insurance

• Pension plans

• Checking and savings accounts

• College savings plan

• Annuities that have death benefits

If you only update your will, there might be conflicts between who you set as a beneficiary in your will and who actually receives your financial assets in your retirement accounts.

Updating Your Will

Your will allows you to name beneficiaries for your assets, property, etc. But if you have other people listed as a beneficiary on your pension, there can be a problem. 

The will does not override beneficiaries of other financial holdings. You must update each one.

This means, if you are divorced and not remarried when you die, who you have named as your beneficiary on your retirement accounts gets the money. If you forgot to update your retirement account, your ex may get all the money instead of who you would rather have it. 

When you update your will, talk with your estate planning attorney and tell her you have other accounts with named beneficiaries. 

Updating your Retirement Accounts

Per federal law, your current spouse receives your retirement money when you die. I heard of one situation when a man was newly remarried but still had his retirement beneficiaries as his children from his previous marriage. He wanted to ensure his children received his benefits. When he suddenly died, his new spouse of two months received all the money, regardless of who he had listed as beneficiaries. 

This is why it is crucial to work with an experienced estate planning law firm such as SmithTaire Legal to ensure you have reviewed your will and all financial accounts. 

Unfortunately, your estate planning attorney cannot update your financial holdings; that is something you need to do separately. 

Here are some hints to help review/change your beneficiary information on your retirement accounts:

• Consider reconciling your will and retirement accounts by designating your estate as your 401(k) or IRA beneficiary.

• If you have a 401(k) - go to your HR department and file the proper paperwork to update your beneficiaries.

• If you have a 401(k) with a previous employer - roll it over to an IRA and fill out the new beneficiary information at this time.

• If you have an IRA - get in contact with the financial institution that holds your money and ask for a beneficiary change form.

Now is the perfect time to update all beneficiary information.

Gwinnett County Estate Planning Attorney Jammie Taire

Planning your will and beneficiaries doesn’t have to be a complex matter. With 20 years of experience in estate planning, contact your experienced legal partner, Jammie Taire and the team at SmithTaire Legal. We will talk with you to determine your wishes and the best way for your beneficiaries to receive your assets after you have passed away.

Schedule an appointment with us today at 678-253-8133 to discuss your situation.