Recent U.S. Supreme Court Case highlights importance of updating beneficiary designations after divorce from Austin Estate Planning Lawyer Liz Nielsen

Life insurance after divorce

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 […]

Post-Divorce Planning to Protect Your Children’s Inheritance from Austin Estate Planning Lawyer Liz Nielsen

Protecting Children's Inheritance after Divorce

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.)

Why Not Just Go on NoloⓇ and Create Your Own Estate Planning Documents Cheaply? from Austin Estate Planning Lawyer Liz Nielsen

do-it-yourself estate planning

There are many software programs, as well as websites, that sell do-it-yourself estate planning documents. These websites and form tools seem to offer a convenient and cost-effective alternative to consulting with an estate planning attorney. But do they really meet your needs and protect your family? Is online, do-it-yourself estate planning worth the perceived upfront savings?

How to Leave Your Life Insurance and Retirement Plan to Your Minor Children from Austin Estate Planning Lawyer Liz Nielsen

minor children

Your children are your pride and joy. It is no surprise that at some point or another, every parent likely becomes concerned about who will care for their minor children if one or both parents die or are incapacitated. From a financial perspective, many parents turn to life insurance in an effort to take care of their family in the event of death. While it is true that life insurance is a particularly helpful financial tool to protect your loved ones, it is just as important to consider how to leave the proceeds to your minor children. Beyond this, you should also take into account how to incorporate your retirement money (IRAs and 401(k)s), another common, significant asset into your overall estate plan.