In 1950, the divorce rate in the United States for those in the top 10% of American net worth was just 6%. By 2010, the divorce rate for the same demographic ballooned to 26%. What is one of the consequences of this trend? People with hundreds of thousands or more in retirement accounts are getting divorced, remarried, and trying to figure out the best way to plan an estate that includes a new spouse and children from a prior marriage.
The obvious, dangerous mistake that some otherwise savvy people make is that they name their new spouse as the primary beneficiary on an IRA account and then name the children from a prior marriage as the contingent/alternative beneficiary when their intent is to have their kids receive some type of remainder after their new spouse dies.
Shriek! Silence of the lamb horror sound!
Filling out a form in this manner … Read the rest of this article!