After the hard work of negotiating out all the separation issues and getting divorced, there are still some loose ends. One I always take care to remind clients about is to change their designated beneficiaries.
With life insurance policies, pensions and investments, many people will designate a beneficiary. They can specify the money to go to their "estate" upon their death, but they also have the option of naming their spouse or children as beneficiaries of the policy or investment. Upon their death, the money goes right to the named person and does not form part of the estate.
At some point after a separation, most spouses decide they no longer want their life insurance, pension or investment monies going to their former partner. They must however specifically change the name of the beneficiary with each policy or investment. Just changing their Will is not sufficient.
There have been numerous reported cases where a former spouse received life insurance or investment monies. The family of the deceased pursued the matter in court, arguing that the deceased intended to make those changes. Most times, the family was unsuccessful.
I have been involved with two files involving the client on the other side passing away, and my client inheriting monies in this way. None of us knew if that is what the deceased intended.
It might seem like a small thing to remember in all the emotion and stress of a separation, but it's important.
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With life insurance policies, pensions and investments, many people will designate a beneficiary. They can specify the money to go to their "estate" upon their death, but they also have the option of naming their spouse or children as beneficiaries of the policy or investment. Upon their death, the money goes right to the named person and does not form part of the estate.
At some point after a separation, most spouses decide they no longer want their life insurance, pension or investment monies going to their former partner. They must however specifically change the name of the beneficiary with each policy or investment. Just changing their Will is not sufficient.
There have been numerous reported cases where a former spouse received life insurance or investment monies. The family of the deceased pursued the matter in court, arguing that the deceased intended to make those changes. Most times, the family was unsuccessful.
I have been involved with two files involving the client on the other side passing away, and my client inheriting monies in this way. None of us knew if that is what the deceased intended.
It might seem like a small thing to remember in all the emotion and stress of a separation, but it's important.
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