IRA and getting remarried
Trying to find the rule…..I have a client who is currently divorced and getting remarried. Can he keep the beneficiary as his children and not have to put his new wife on as a beneficiary?
Thank you in advance.
Trying to find the rule…..I have a client who is currently divorced and getting remarried. Can he keep the beneficiary as his children and not have to put his new wife on as a beneficiary?
Thank you in advance.
Permalink Submitted by Alan Spross on Sat, 2008-01-19 03:43
Yes, for an IRA he can retain the children beneficiaries. But if he has an employer plan, the plan may want his new spouse to sign a release.
Permalink Submitted by Denise Appleby on Sat, 2008-01-19 16:21
You may also want to check State law, if the State is subject to [url=http://www.retirementdictionary.com/marital-property-state.htm%5Dcommunity or marital property[/url] laws—- Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
If the client lives in one of these States:
—–Check the State law to determine the definition or marital/community property. I think most- if not all defined such property as that which is accrued during the marriage. But, I am not an attorney, so…
—–If community property does not include amounts accrued prior to the marriage:
———-[b]1) [/b]Do not add new contributions to that account after the remarriage takes place:
———-[b]2)[/b] Maintain readily accessible documentation (separately and with the IRA) that clearly shows it is pre-marital property.
Even if the client does not live in one of those states, it may be worthwhile to take those steps. It could save the children a lot of frustration and money
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