A Wall Street Journal article on June 12, 2024, detailed what happened to the estate of a man named Jeffrey. (The estate is now in the court system, so full names were used in the article.) In 1987 Jeffrey was living with Margaret. Jeff started a new job and put Margaret down as the sole beneficiary of his workplace retirement account. Margaret and Jeff never married, and the relationship ended in 1989. Margaret later moved to another state, married, and had two children.
Jeff died in 2015. He had never changed the beneficiary on his retirement account. Jeff’s family was soon asking “Who is Margaret?” Answer: She is the one who owns a $1.15 million dollar retirement account!
It doesn’t matter if Jeff had a Will or a Living Trust. Retirement accounts and life insurance policies are legal contracts, and the legal beneficiary is named in the contract.
While the dollar amount was smaller, SRS is aware of an example of this in The Villages. The Villager was on hospice and both hospice and the VMA Social Worker asked about estate and funeral plans. The Villager assured them all was organized, and her executor/trustee had the original paperwork. Unfortunately, both parties failed to ask if there were life insurance or retirement accounts. Sure enough, there was an IRA account which the ex-husband inherited as the named beneficiary.
Our question for you: are you positive who your beneficiary is for your retirement accounts and insurance policies? If the contracts have been around for a while, you just might be surprised at the answer. It might be that ex from 28 years ago. Perhaps you should check.
SRS Reminder: Reverse Mortgage broker handout
Senior Resource Services has updated its list of brokers who have obtained reverse mortgages for Villagers. Two of the brokers have recently changed firms, so please do not use our handout if it is dated earlier than June, 2024.
As the list indicates, the names are for your convenience, and we make no personal recommendations. Please stop by the office if you would like a copy. Or email SRS at villagessrs@sbcglobal.net.
All brokers on the list are very willing to make house calls.
Note: The Senior Resource Services (SRS) office hours for drop-in assistance are Monday, Wednesday, and Friday from 10 a.m. to noon. The SRS office is in the Cribari Center across from the Post Office. You may also leave a message at 408-239-5253 or e-mail SRS at villagessrs@sbcglobal.net. The website is thevillagesgcc.com/srs. The purpose of SRS is to provide education and general business and financial information. All assistance is free and confidential. You should ask your professional advisor about your individual situation.
