In 1987, Jeffrey Rolison named Margaret Sjostedt as the sole beneficiary of his retirement account. Nearly four decades after their breakup, Margaret stands to inherit Jeffrey’s $1 million retirement fund simply because he never updated the beneficiary form.
Their relationship ended in 1989. Peggy moved on, got married, and had children, while Jeffrey later entered a long-term relationship with Mary Lou Murray. When Jeffrey died in 2015 at the age of 59, he had no spouse or children, and the court ruled that Mary Lou Murray wasn’t entitled to his assets.
Jeffrey’s brothers, shocked to learn that Margaret was still listed as the beneficiary, have been contesting the claim in federal court. Despite their efforts, a court ruled in 2020 that Procter & Gamble should release the funds to Margaret. The money remains in limbo as the brothers continue their legal battle, but overturning the court’s decision will be challenging.
This case underscores a crucial lesson: always keep your beneficiary forms up to date. These forms, which designate who receives assets from retirement accounts and life insurance policies, can take precedence over wills and other estate planning documents. Federal law typically mandates that employers distribute these funds to the last named beneficiary or a surviving spouse unless the spouse waives the claim.
Regularly reviewing and updating beneficiary designations can prevent unintended outcomes and ensure your assets are distributed according to your wishes. If you need assistance with estate planning or updating your beneficiary forms, don’t hesitate to reach out to me at (480) 719-7333. It’s a small step that can make a big difference for your loved ones.