Q: My husband recently died and he left
his Mom and Dad as the beneficiaries for his 401(k). Do I have
any legal grounds to contest this, and will I need an attorney to do
so? -- LH via email
A: You certainly do have grounds to contest this -- and it shouldn't take a lawyer. You're legally entitled to this money. There's no gray area here.
Call the 401(k) plan's administrator immediately and tell them you are the plan participant's surviving spouse. By federal law, you are entitled to be your husband's 401(k) beneficiary, says Lisa Arko, an employee benefits consultant at Towers Watson in New York City. Your spouse can't name someone else unless you have consented in writing to waive that right.
(And in case you're wondering, that waiver can't be part of a prenuptial agreement. A prenuptial agreement can only address rights you actually have -- and you have no legal right to be your mate's 401(k) beneficiary until after your marriage.)
It's entirely possible that your husband had named his parents as his beneficiaries before you were married, and simply failed to update his 401(k) paperwork after the wedding. That seems likelier than that he would designate them as beneficiaries after your marriage without first obtaining your written consent.
But it makes no difference how this happened. You are legally entitled to this money. The 401(k) plan administrator will be very aware of this, and should respond immediately. The last thing they'll want to do is pay the wrong beneficiary!
(c) Lynn Brenner, All Rights Reserved.
A: You certainly do have grounds to contest this -- and it shouldn't take a lawyer. You're legally entitled to this money. There's no gray area here.
Call the 401(k) plan's administrator immediately and tell them you are the plan participant's surviving spouse. By federal law, you are entitled to be your husband's 401(k) beneficiary, says Lisa Arko, an employee benefits consultant at Towers Watson in New York City. Your spouse can't name someone else unless you have consented in writing to waive that right.
(And in case you're wondering, that waiver can't be part of a prenuptial agreement. A prenuptial agreement can only address rights you actually have -- and you have no legal right to be your mate's 401(k) beneficiary until after your marriage.)
It's entirely possible that your husband had named his parents as his beneficiaries before you were married, and simply failed to update his 401(k) paperwork after the wedding. That seems likelier than that he would designate them as beneficiaries after your marriage without first obtaining your written consent.
But it makes no difference how this happened. You are legally entitled to this money. The 401(k) plan administrator will be very aware of this, and should respond immediately. The last thing they'll want to do is pay the wrong beneficiary!
Please send your questions to Lynn@LynnBrennersFamilyFinance.com. I'm sorry I can't respond personally to every email. Questions are addressed only online.
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