Investopedia Features FRB Senior Counsel Karen Davakis on Divorce and Estate Planning

Divorce can create unexpected complications in even the most carefully crafted estate plans. FRB Senior Counsel, Karen Davakis, recently shared her expertise in Investopedia’s article, “The Simple Mistake That Could Leave Inheritance for an Ex, No Matter What Your Will Says.” 

Karen points out that while the law in most states operates to automatically revoke provisions made to an ex-spouse in your will once a divorce is finalized, this protection doesn’t extend to all types of assets. Accounts with designated beneficiaries—such as retirement plans, life insurance, and certain bank accounts—can still pass directly to the named individual, regardless of what your will provides. 

"A will only controls assets that are held in your name that don’t have a designated beneficiary. It doesn’t control assets that pass outside of probate, such as assets with beneficiary designations," Karen explains. 

Her advice is straightforward: regularly update beneficiary designations, review any estate planning documents you have in place, and consult an attorney to ensure your estate plan accurately reflects your intentions. 

Read the full article here: https://www.investopedia.com/divorced-in-your-50s-these-3-steps-could-make-or-break-your-retirement-11791101