Imagine you’re in your twenties, just starting your career. You fill out a beneficiary form at work, naming your then-significant other as the beneficiary of your retirement account. Life moves on, the relationship ends, but you forget to update your beneficiary designation. Fast forward nearly three decades—your retirement account has grown, but you pass away, and your ex-partner inherits your nest egg, leaving your family with nothing.
Sound far-fetched? This exact scenario played out in a real case involving Jeffrey Rolison, who never updated his beneficiary form. After his death, his ex-girlfriend inherited his million dollar retirement account, leaving his family devastated.
The lesson here is clear: beneficiary designations override wills, trusts, and even state inheritance laws. It doesn’t matter what your will says—what’s on your beneficiary form is legally binding.
This case highlights the importance of regularly reviewing and updating beneficiary designations. A trusted estate planning attorney can help ensure that your wishes are honored and that your loved ones are protected. Don’t make the million-dollar mistake of neglecting your estate plan. Regular check-ins and updates can safeguard your family’s future and avoid costly legal battles.
Make sure your estate plan reflects your current wishes— don’t leave it to chance. Stay on top of your designations, and you’ll protect your legacy for generations to come.
Joshua A. Reyes, Esq. is a local Estate Planning Attorney with ARCHA LAW P.C. He can be reached at (760) 766-2220
