Change of Beneficiaries
We have a client that is going through a divorce, should be final in 4 months. Client wants to update their beneficiaries on all of his accounts to reflect his children (ages 7 & 8). With knowing that there is a divorce pending…can we go ahead and change the beneficiaries now or do we need to wait for the divorce to be final?
Permalink Submitted by Bruce Steiner on Tue, 2013-02-26 22:02
Are any of his benefits in qualified plans in which she has to be the primary beneficiary of some or all of the benefits until they are divorced or she waives her rights?Does state law or court order preclude him from making any beneficiary changes until they reach an agreement?
Permalink Submitted by mk foss on Wed, 2013-02-27 02:04
In addition to the good points that Bruce has raised, you should also be aware that you must name minor beneficiaries with care. In some cases a trust may be appropriate but in other cases you may want to name a custodian under your state’s uniform transfers to minors act to handle matters until an age allowed by the UTMA law. Eighteen may be too young.