Have you divorced? Been widowed? Remarried? Are there new children? Have your children grown? Don’t have your loved ones’ grief compounded with financial stress.
Wills
In a recent case, there was an old Will from before a recent marriage. The assets were left to a prior spouse and siblings. Under New Jersey and New York state law, gifts to prior spouses are automatically revoked by law. However, that just means that all assets pass to the alternate beneficiary under the old Will. In this case, that meant all assets passed to the deceased spouse’s siblings, not to the new spouse.
In New Jersey and New York, spouses can elect against a Will to claim a share of their spouse’s assets. That means they can choose an amount that the state mandates under its laws rather than the actual amount left to them in a will, if the state’s amount is larger. However, it still may only result in one-third of the total assets going to them. This is far short of what most people desire to leave for their partner.
What if there is no Will? The intestacy statute (the law that governs situations where no will exists) does not fully protect spouses. The law in New Jersey provides that if there is no Will, most assets go to the surviving spouse, but nearly one-fourth goes to the deceased’s parents. If there are children from a prior marriage, then a little more than half passes to the spouse. This is why I am such a vocal advocate of people creating a Will.
Beneficiaries
It is crucial that beneficiary designations (who you’re leaving money and things to) are updated. You probably don’t want your niece to get your IRA instead of your new spouse. In yet another example of why it’s best to have a real legal professional handle things rather than create a DIY solution, updating beneficiaries applies to Wills and insurance policies and brokerage accounts and all manner of assets. Your estate attorney should have an already existing list of assets that will make this process easy and, most importantly, accurate.
If you want to make sure you have a complete list of assets, just email me at eric@ericrubenlaw.com to request your free Family Wealth Inventory & Assessment form or go to www.ericrubenlaw.com and hit the Contact Eric button and fill out a consultation form. Take control of what you can.