Once Upon a Time
By: Mary Grace Musuneggi
www.MFGplanners.com
Once upon a time Jeff divorced Susan. Jeff married Karen. While reviewing their estate planning and beneficiaries, their social security options and pension options, Susan’s name was showing up everywhere.
When we brought this to Jeff’s attention, he was amazed that this would make any difference. “After all,” said Jeff, “Karen is my wife, wouldn’t she get everything anyway?”
The answer is NO.
If you are in a “new” marriage or if you have an extended family, please call us to review your estate planning.
Once upon a time, Eileen, single mother of Karena, had to choose a beneficiary for her 401k, group insurance, and personal assets. She chose Karena, but Karena is only 14.
Peggy, a grandmother of three left her IRA to Elizabeth, her granddaughter who is 8.
Are these beneficiary designations a good idea?
The answer is NO.
Although we recognize that these parents and grandparents have trusted their assets to their children and grandchildren out of love, the state of Pennsylvania does not allow these underage beneficiaries as potential owners of assets. These assets could be held up by the estate, be transferred to an ex-spouse (and their new spouse - UGH!) or directed to a trustee not of your choosing.
Beneficiaries who are under 18 or even 21 will present a serious issue for your estate.
If you are a single parent, a divorced spouse, or a child of any of these, please contact us so that we can be sure that inheritances go to the right person, in the right way, at the right time.
Once upon a time, Joan did all of her estate planning, updated her beneficiaries and titled her assets correctly. Does Joan sleep well at night?
The answer is YES.
