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RayAnswers
RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 39441
Experience:  Texas lawyer for 30 years in Estate law
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If you got a divorce and your name still remains on a life

Customer Question

If you got a divorce and your name still remains on a life insurance policy and an ira account as a beneficiary however your spouse has passed away do you have to give the monies to the trust? And if not do you owe taxes on it?
JA: Since estate law varies from place to place, can you tell me what state this is in?
Customer: Missouri
JA: Has anything been filed or reported?
Customer: I'm not sur what you mean.
JA: Anything else you want the lawyer to know before I connect you?
Customer: No
Submitted: 7 days ago.
Category: Estate Law
Expert:  RayAnswers replied 7 days ago.

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question, conduct and prepare your response.

Expert:  RayAnswers replied 7 days ago.

You should get copy of death certificate here and write demand for payment.If you are named beneficiary they should pay you.The IRA here you have option to roll it over in your name or cash it and count it as income--no penalty for early withdrawal since it is inherited here.You will pay regular income taxes on it.

I appreciate the chance to help you today.I am so sorry for the loss of this person.

If you can positive rate 5 stars it is much appreciated.

Customer: replied 7 days ago.
You didn't really answer my question.
Customer: replied 7 days ago.
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Expert:  RayAnswers replied 7 days ago.

I am sorry missed that part.No taxes here on life insurance , there is on IRA as I set out above unless you roll it over and defer.You don't have to give the monies to anyone they are yours free and clear as named beneficiary.Once they pay you it is yours.They will ask you if you want taxes held out of IRA if you cash it buts thats optional here.

Thanks for the follow up let me know if you have more.I appreciate the chance to follow up.

Customer: replied 7 days ago.
But I've been told that since I was divorced the iras monies go to the estate. Or my kids could get a court order and then it would be theirs. Not the life insurance. This is in the state of Missouri
Customer: replied 7 days ago.
Expert:  RayAnswers replied 7 days ago.

Thats correct if the naming of beneficiary was pre divorce.If it was post divorce and she named you then it should go to you.

Reference to the case law

https://www.courts.mo.gov/file.jsp?id=72873

Customer: replied 7 days ago.
let me understand...if he named me as beneficiary while we were married and nothing was changed then I'm not due to the monies once we are divorced?
Expert:  RayAnswers replied 7 days ago.

Thats correct.If it was post divorce you should be able to claim it here.

Thanks for the followup.