A retirement account can represent decades of saving, yet one outdated form can determine where all that money goes after the owner dies. Many people assume their will controls their IRA, 401(k), or other retirement savings, but beneficiary designations often operate separately from instructions in a will. That means a forgotten ex-spouse, deceased relative, or outdated retirement account beneficiary can create financial and legal headaches for the people left behind. Exactly who receives the money can depend on the account type, beneficiary designation, plan documents, federal spousal protections, divorce orders, and other applicable law, which is why an outdated form should never be treated as a minor paperwork problem. And it comes up during an already difficult time, when family members are trying to settle an estate and find out that the paperwork does not match what everyone thought the deceased person wanted. If you want to help your loved ones avoid this headache, here is what you need to know.
