How One Man Made a Million Dollar Inheritance Mistake

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Alex Menassa on Fox 8 News discussing a Million Dollar Inheritance Mistake

With the decline of defined benefit plans, most people will be relying on their 401ks (along with Social Security) for retirement income. Thus most people will have the majority of their financial wealth (apart from their home) tied up in 401ks and IRAs. Imagine making a million dollar inheritance mistake. Most people don’t realize that 401ks and IRAs are governed by beneficiary designation forms. These forms will control who gets the money if the account owner passes away.

Many people are shocked to learn that their will has no bearing on who gets the money; it’s all about the beneficiary form. If you name someone who outlives you, the account will pass entirely free of probate. In spite of the importance of these forms, most people have no idea where they are, or what they say. Make sure you know where all your forms are, and keep them updated for life changes…marriage, divorce, having children, etc. Don’t let the tragedy of Bruce and Ann Friedman happen to you. Please contact Alex Menassa to learn more.