Congratulations on the purchase of your new home! Whether this is your first home, an upgrade, or you’re downsizing, purchasing a new home is a big event in your life. When these major life changes occur, it is important that you are properly prepared. Below are a few things for you to consider now that […]
Last week, the United States Supreme Court issued a ruling on a case involving life insurance beneficiary designations after divorce. Mark Sveen had named his wife as the beneficiary of his life insurance policy. They got divorced, but Mr. Sveen did not update the beneficiary. Court ruled that divorce invalidated the beneficiary designation in favor […]
Consider this story. Beth’s divorce from her husband was recently finalized. Her most valuable assets are her retirement plan at work and her life insurance policy. She updated the beneficiary designations on both to be her two minor children. She did not want her ex-husband to receive the money.
Beth passes away one year after her divorce. Her children are still minors, so the retirement plan and insurance company require an adult to be appointed by a court to receive the inheritance Beth left behind. Who does the court presumptively look to serve as the caretaker of this money? Beth’s ex-husband who is now the only living parent of the children. (In some states, this caretaker of the money is called a guardian, whereas in others it is the conservator. The title does not matter as much as the role, which is to manage the funds on behalf of a minor, since the minor is not legally able to handle significant assets or money.)
The divorce process can be long and expensive. However, the work does not end once the divorce decree is signed. In order to ensure that your assets and estate planning wishes are carried out in light of this major life change, there are three things you must do as soon as possible after divorce.
