Page 16 - Abacoa Community News - July '24

Page 16, Abacoa
Financial Focus ®

Be Careful When Naming property laws require they split their assets 50/50, but only with your financial advisor whenever you experience a major
life event, such as a marriage, divorce or the addition of a
those assets they obtained while they lived in that state. If you
Beneficiaries were to stay in the same community property state throughout new child. Your investments, retirement accounts and life
your marriage and divorce, the ownership issue is generally insurance proceeds are valuable assets — and you want them
By Sally Sima Stahl straightforward, but if you were to move to or from one of to go where you intended.
You might not have these states, it might change the joint ownership picture. This article was written by Edward Jones for use by
thought much about Thus far, we’ve only talked about beneficiary designation your local Edward Jones Financial Advisor, Edward Jones,
beneficiary designations — issues surrounding divorce. But if an ex-spouse — or any Member SIPC.
but they can play a big role beneficiary — passes away, the assets will generally pass to Edward Jones is a licensed insurance producer in all states
in your estate planning. a contingent beneficiary — which is why it’s important that and Washington, D.C., through Edward D. Jones & Co., L.P.,
When you purchase you name one at the same time you designate the primary and in California, New Mexico and Massachusetts through
insurance policies and open beneficiary. Also, it may be appropriate to name a special Edward Jones Insurance Agency of California, L.L.C.;
investment accounts, such as needs trust as beneficiary for a family member who has Edward Jones Insurance Agency of New Mexico, L.L.C.; and
your IRA, you’ll be asked to special needs or becomes disabled. If this individual were Edward Jones Insurance Agency of Massachusetts, L.L.C.
name a beneficiary, and, in to be the direct beneficiary, any assets passing directly into Edward Jones, its employees and financial advisors
some cases, more than one. their hands could affect their eligibility for certain programs. cannot provide tax advice. You should consult your qualified
This might seem easy, especially if you have a spouse and You may need to work with a legal professional to sort tax advisor regarding your situation.
children, but if you experience a major life event, such as a out beneficiary designation issues and the rules that apply in Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
divorce or a death in the family, you may need to make some your state. But you may also want to do a beneficiary review 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
changes — because beneficiary designations carry a lot of
weight under the law.
In fact, these designations can supersede the instructions
you may have written in your will or living trust, so everyone
in your family should know who is expected to get which
assets. One significant benefit of having proper beneficiary
designations in place is that they may enable beneficiaries
to avoid the time-consuming — and possibly expensive —
probate process.
The beneficiary issue can become complex because not
everyone reacts the same way to events such as divorce —
some people want their ex-spouses to still receive assets
while others don’t. Furthermore, not all the states have the
same rules about how beneficiary designations are treated
after a divorce. And some financial assets are treated
differently than others.
Here’s the big picture: If you’ve named your spouse
as a beneficiary of an IRA, bank or brokerage account,
insurance policy, will or trust, this beneficiary designation
will automatically be 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 non-spouse beneficiary after
the divorce. But if you’ve named your spouse as beneficiary
for a 401(k) plan or pension, the designation will remain intact
until and unless you change it, regardless of where you live.
However, in community property states, couples are
generally required to split equally all assets they acquired
during their marriage. When couples divorce, the community

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