Broker Check

FRS Tip of the Month

June 27, 2022
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          Here's a sticky situation. Let's say, you're in the FRS Investment Plan and recently remarried. Normally, you would want to list your spouse as the primary beneficiary of all of your accounts, right? But what if you die and your new spouse receives their inheritance. How likely is that they will list your children from your previous marriage as the beneficiary of those accounts? By not carefully planning out this simple beneficiary designation, you may inadvertently completely disinherit your children and that may not be what you intended. 

          A way to avoid this costly mistake, is by establishing a QTIP Trust (Qualified Terminable Interest Property Trust). This gives income to your surviving spouse to maintain their standard of living, but they cannot name new beneficiaries of the trust assets, allowing you to then pass on those assets to your children, upon your new spouse's death. Of course, you would want to consult with a competent estate planning or elder law attorney to make sure this type of trust works best in your situation. 

          For more tips and strategies, check out one of our upcoming workshops at www.FRSWorkShop.com or give us a call 386-299-2893.