wills, pre-nups and retirement plans

[Arline]

New York State

In his will, a husband leaves everything to his children except for a sum of money to go to his 2nd wife as per terms of a pre-nup. Pre-nup states wife gives up all other rights to which she would otherwise be entitled. Can wife still receive benefits of husband's 401 (k) and Keogh? Do they supercede pre-nup and will? Wife never signed waiver re 401(k) or Keogh, and pre-nup was signed under duress.

 

[advisor10]

JULY 7, 2001

DEAR ARLINE:

It is possible that this wife might be eligible to claim the 401K since it is federal law that wife gets first priority on these monies and it can not be given to other beneficiaries without her signing the waiver (she might decide to keep this money or she may sign it over to the estate). As far as this and the Keogh plan, whoever he designated as beneficiaries (on the form he signed when he opened the account) is who the money will go to, and the will language can not supersede what is on the beneficiary designation form.

Discuss this with the personnel/human relations department/benefits manager of each plan to find out what your options are.

SINCERELY,

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