spousal consent
I have a client who refuses to have her husband sign the spousal consent for the beneficiary she named ( her son) This is a second marriage and she is claiming they have a pre-nuptial. I live in Wisconsin a marital property state, what effect would the lack of the husband’s signature have on the account in the event the wife dies?
Permalink Submitted by mk foss on Tue, 2009-03-17 21:21
California is a community property state which is similar (I think) to the law in WI. With a qualified plan, you need to have a spousal consent to name a beneficiary other than a spouse – a prenuptial agreement does not work because it is not signed while the two individuals are spouses. Even if there is a signature there is additional time when benefits are to begin that the spouse can revoke a previous consent.
The rules for spousal consent don’t apply to IRAs for federal tax purposes but you must deal with the state laws. Property acquired before the marriage is separate property in CA and so there should be no difficulty in naming someone other than the spouse. As a practical matter, the custodians want a consent – they don’t seem concerned about whether or not it’s technically separate or community.
Alan also lives in a community property state. He may have some further comments.
Permalink Submitted by Bruce Steiner on Tue, 2009-03-17 21:55
Without prejudice to any rights the husband may have, could the wife move the IRA to a custodian in another state who would accept her beneficiary designation without her husband’s signature?