RENO, Nev. (KOLO) – When you purchase insurance or open investment accounts, such as an IRA, you’ll be asked to name a beneficiary — but major life events may cause you to take steps to protect that beneficiary.
Edward Jones financial advisor, Ashley Hicks joins us on Morning Break to share what you need to know when it comes to who your beneficiaries are.
If you’ve named your spouse as a beneficiary of an investment account or insurance policy, this beneficiary designation will be automatically revoked upon divorce in about half the states. So, if you still want your ex-spouse to get these assets, you will need to name them as a beneficiary after the divorce.
And when couples divorce in a community property state, the laws require they split their assets 50/50, but only those assets obtained while they lived in that state. Assets obtained during marriage in other states may be split differently.
You may need to work with a legal professional to sort out beneficiary designation issues and the rules that apply in your state. But you may also want to do a beneficiary review with your financial advisor whenever you experience a life event such as a marriage, divorce or the addition of a new child.
Your investments, retirement accounts and life insurance proceeds are valuable assets — so make sure they go where you intended.
These tips are from Edward Jones for use by your local Edward Jones Financial Advisor.
Ashley Hicks is a monthly contributor to Morning Break. To learn more about her services at Edward Jones, click here. She can also be found on Facebook and LinkedIn.
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