Estate Planning and Former Spouse Beneficiaries
The process of divorce is extremely emotional and stressful for people, so, as a result, it is quite
easy to overlook important details. One such important detail to remember after receiving a
divorce is to check the beneficiaries listed on any life insurance policies, wills, trusts, IRAs,
401(k)’s and other employer-provided plans or similar documents. Quite often a former spouse
is listed as the beneficiary, and you will want to change the designation. Although the process
to change the designation will vary by company or the type of document you are dealing with,
the procedure should be relatively simple.
What you may not be aware of, however, is that if you are required to keep your former spouse
as a beneficiary on a policy due to the terms of your Settlement Agreement or Court Orders, or
you simply chose to do so, there are some steps you need to take to keep your former spouse
as a designated beneficiary. Most states will require that after a divorce is granted, you re-
designate your now former spouse as a beneficiary. Failure to make this new designation may
result in an automatic revocation of funds that are supposed to be paid to a former spouse
beneficiary. These funds may be needlessly tied up or potentially spent on attorney’s fees after
the fact in order to fix the problem.
The best way to avoid these complications is to meet with an estate planning professional
immediately after your divorce to discuss a new estate plan that suits your new status.
Experienced estate planning attorneys Fayetteville AR of the Deborah Sexton Law Office PA
offers estate planning and business planning resources to residents of Fayetteville AR. To learn
more about these free resources, please visit http://www.arkansas-estateplanning.com today.