His Ex Is Getting His $1 Million Retirement Account. They Broke Up in 1989. – WSJ

Why It’s Important to Keep Your Beneficiary Forms Updated

When it comes to your family’s money, one small detail can make a big difference: keeping your beneficiary forms updated. These forms decide who gets the money from your retirement accounts, life insurance policies, and bank accounts when you pass away. Even if you wrote them a long time ago, these forms are usually more important than your will. This can lead to surprising and sometimes tricky situations.

A good example is the story of Jeffrey Rolison. In 1987, he listed Margaret Sjostedt as the person who would get his retirement money. They broke up in the 1980s, but Jeffrey never changed the form. When he died in 2015, his nearly $1 million retirement account was set to go to Margaret. His brothers were shocked and tried to fight it in court, saying that Jeffrey didn’t really want Margaret to get the money.

The law says companies have to give retirement money to the person listed on the last form, or to a surviving spouse. In Jeffrey’s case, his company, Procter & Gamble, had to figure out if Margaret, his brothers, or his long-term partner, Mary Lou Murray, should get the money. In the end, the court said Margaret should get it because her name was on the form.

This shows how important it is to update your beneficiary forms regularly. Big life changes like getting married, having kids, or someone passing away mean you should check and update these forms. But many people forget, and old forms end up deciding who gets their money.

Lawyers say companies should do a better job making sure old paper forms are updated to electronic records. Employers could also remind employees to review and update their beneficiary forms regularly.

As people save more money for retirement, it’s really important to keep these forms up to date. By checking and updating your beneficiary forms, you can make sure your money goes to the right people and avoid any family fights.

In conclusion, don’t let old forms decide what happens to your money. Take a few minutes to check and update your beneficiary forms. It’s a simple step that can make a big difference for your family’s future.