Can annuity beneficiaries be contested?
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Can annuity beneficiaries be contested?
Annuities appeal to those who seek better returns in a low-interest environment. So it's important to realize that an unscrupulous person cannot avoid a court contest simply by having someone make unfair changes to beneficiary designations, instead of changes to a will.
Does a divorce decree override a named beneficiary?
Divorce does not usually change a beneficiary designation unless the divorce decree makes a stipulation to change it. In a community property state, the designation naming the ex-spouse as beneficiary may not be valid if the current spouse did not consent to such a designation.
Who you should never name as your beneficiary?
Whom should I not name as beneficiary? Minors, disabled people and, in certain cases, your estate or spouse. Avoid leaving assets to minors outright. If you do, a court will appoint someone to look after the funds, a cumbersome and often expensive process.
Can a spouse contest a beneficiary?
ERISA generally preempts state laws, particularly regarding claims for policy benefits. It trumps state law recognizing a community property interest of a spouse in the policy, as well as provisions in many state statutes that effectively void beneficiary designations in favor of an ex-spouse.
