IRA beneficiary is former spouse
Under NY law, does divorce revoke the designation of former spouse as IRA beneficiary? Designation was made prior to divorce and never changed.
Under NY law, does divorce revoke the designation of former spouse as IRA beneficiary? Designation was made prior to divorce and never changed.
Permalink Submitted by tomd37 on Fri, 2015-05-15 18:54
My “GUESS” is no, but will see what the more qualified respondents say. Tom D.
Permalink Submitted by Jose Morales on Fri, 2015-05-15 19:08
Unless New York has a specific law stating so, no it does not. Florida has enacted such a law because of litigation surrounding this exact scenario. It is critically important to keep your beneficiary designation updated whenever there is any life event that makes it wise to do so such as divorce or the passing of a spouse.
Permalink Submitted by Richard Ernst on Fri, 2015-05-15 19:40
NY. I had a client that has been divorced for over 15 years. Every annual review, we reminded him that his ex-wife remained as a equal beneficiary to his Life Insurance policy along with his two dautghers. When he passed away in January, we submitted three claim forms along with a COD to the company in question. To our suprise, our office received a call from the Home Office informing us that his ex-wife WOULD NOT receive a benefit unless there was something in writing, like a Divorce Decree, indicating that she was to benefit. There was thank god!! They informed us that, in the future, we have to change the beneficiary AFTER THE DIVORCE IS FINAL should the owner/insured of the contract want the ex to benefit as a beneficiary. REF: EPTL 5-1.4
Permalink Submitted by Bruce Steiner on Fri, 2015-05-15 22:03
It shouldn’t have been a surprise. The statute was changed in New York about 7 years ago.