Beneficiary Designation

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107855351Beneficiary Designations

Whether purchasing a life insurance plan, opening a checking or savings account, or signing up for an employee retirement plan, the most important thing you will be asked to do, is to designate one or more beneficiaries, to whom the asset will go upon your death. It is a task that we complete by signing a form, and often forget about. Typically it is the spouse that is named as the primary beneficiary. However, what happens if in the meantime you get divorced, and die without changing your beneficiary designation? Sect. 732.703 of our Florida Statutes provides the answer. If there has been a dissolution of marriage, and the asset is not subject to a marital settlement agreement, then the asset passes, as if the divorced spouse had predeceased the asset holder. It is still good practice to update beneficiary designations when such a life change occurs, however.