Following a spousal death, you may be feeling overwhelmed with a lot of emotions and dealing with the legality of finances may be very difficult for you. Here is what an attorney can do for you.
Spousal Death: Sharing the 401K
When dividing a defined contribution plan – such as a 401K, 403B, or other money account – the death of the titled spouse should not impact the rights of the non-titled spouse. We usually have an agreement that provides for the non-titled spouse to remain a beneficiary for their share of that fund until the date of division. At that time, another order provides for transfer of their share to them and out of the plan. Death of the titled spouse shouldn’t impact those rights.
Download Our Free Divorce Guide
Spousal Death: Sharing the Pension
When dividing a defined benefit pension plan, or a pension that provides a monthly payment, it is important to consider all of the options available to both parties and ensure that they are protected in the event the plan’s titled party dies. We address issues such as what happens if the titled spouse dies before electing the pension, and what happens if they die after electing their pension. By setting up a separate interest pension plan, we render that a non-issue. Each spouse has his or her separate interest in the pension, and neither one’s rights will be affected by the death of the other. In the case of a shared interest pension plan, however, it is important to ensure that the non-participant – or the spouse who is not titled to the plan – is protected by a survivor annuity and a pre-retirement survivor annuity. The amount they receive for a survivor annuity and/or pre-retirement survivor annuity depends upon the specific pension plan and what has been negotiated in the particular case.
If you need caring and experienced representation, contact the office of family law attorney Jean Mahserjian.
