The United States Court of Appeals for the First Circuit recently held that the ex-spouse of a deceased man was entitled to the proceeds of his IRA account. This case is informative for people who are going through divorce and having their soon to be ex-spouse named as a beneficiary on their investment or insurance accounts. If you are considering divorce, you should consult a knowledgeable Rhode Island divorce attorney to make sure that all of your designations are as you want them.
Facts of the Case
This case revolves around an Individual Retirement Account (“IRA”), which is a type of investment account intended to help finance retirement. A man was married and opened an IRA account through his employer. At that time he named his wife as the beneficiary of the account in the event of his death. A couple of years after the account was created he got divorced. However, he never removed his now ex-wife as the beneficiary of the IRA.