We frequently receive inquiries from family members of decedent owners of various insurance products where there is a disconnect between their impression of who the owner of the policy wanted to be a beneficiary, and who, in fact, ended up becoming the beneficiary. So, we thought to address that topic briefly in this commentary.
While you should always consult your personal attorney for legal questions, from a very general standpoint, the beneficiary of assets in retirement accounts such as IRAs, 401(k)s, and life insurance payouts are typically identified in the product documents. These designations supersede any conflicting instructions in your last will and testament. However, if you live in a community property State, your spouse may need to waive their legal right if you designated to another recipient more than 50% of the community property funds in your retirement accounts. It is best to discuss these potential disconnects with your attorney and then let your family members know that you have thought out the situation and know and understand the consequences of you have decided.
Call us if you’d like to review any beneficiaries you have identified on any accounts or products with us, as we are always here to help.