Your ex-spouse could inherit ALL of your money and there’s not a thing you can do about it.
True story. A guy didn’t think to update the beneficiary on his Rollover IRA when he got divorced.
60 years after remarrying and having kids with his new wife, he passed away and left all of his money to his ex-wife.
The new wife and the kids fought it in court, but the ex-wife won his millions because she was still listed as the primary beneficiary.
So if it’s not already, add double-check beneficiaries to your “financial adulting” checklist.
You want both primary AND backup (called contingent) beneficiaries listed on:
– Retirement accounts (IRA’s, Roth’s, 401k’s, etc)
– Health savings accounts
– Life insurance policies (both through work and your own)
If your kids are minors, then list your trust as the contingent beneficiary and your spouse as the primary.
We’re currently doing this with all of our Financial Zen Members, so if we already work with you, don’t worry we’ll do it in your next A.I.M.
If you’re not, then it’s up to you.
Speaking from experience even if you did this last year and nothing has changed, still check it.
We always find mistakes where we weren’t expecting any.
It’s worth 5 minutes a year to make sure your ex doesn’t get your money.
