Making sure your Financial Records are Updated
Last year, there was a U.S. Supreme Court decision that settled a dispute between a widow and the man's first wife, who he had been divorced from for over 10 years. The dispute was for the deceased husband's federal employee insurance benefits. The judges ruled in favor of the deceased man's first wife since she was still the designated beneficiary on his policy.
You probably think that the financial rights to any insurance or employee benefit policy are covered under the terms and conditions of your will. The truth is any assets in most bank accounts, retirement plans and insurance policies convey directly over to the individuals listed in on the beneficiary form. Your loved ones may be counting on these assets for their living expenses, not knowing that this money could be going to a past beneficiary that is no longer the intended recipient.