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child as the beneciary of a retirement account after a divorce, remarriage will leave
only 50% of those assets with that child when the accountholder dies, rather than
100%, unless the new spouse waives his or her right to receiving 50% of the assets.
The new spouse will be in line to receive that 50% of the account even if unnamed on
the beneciary form. 1
IRAs. Unlike an employer-sponsored retirement plan, a spouse does not have
automatic beneciary rights with an IRA. at is because IRAs are governed under
state laws rather than ERISA. One interesting estate planning aspect of an IRA
rollover is that the owner of the new IRA has the freedom to name anyone as the
primary beneciary.
1
Life insurance policies. e death proceeds go to the named beneciary;
occasionally, a beneciary may not know a policy exists.
Recently, 60 Minutes did an expose on the insurance industry. Major insurers had
withheld more than $7.5 billion in life insurance death proceeds from beneficiaries.
ey had a contractual reason for doing so: the beneciaries had never stepped
forward to le claims. 5
While many of the policies involved were valued at $10,000 or less, others were
worth over $1 million. e deceased policyholders had either failed to tell their heirs
about the policies or misplaced the copies and the paperwork. eir heirs did not
know (or know how) to claim the money. As a result, the insurance proceeds lay
unclaimed for years, and the insurers only now feel pressure to pay out the benets. 5
Update your beneciaries; let your heirs know how vital these forms are. Make
sure that your beneciary decisions on retirement, brokerage and bank accounts,
college savings plans, and life insurance policies suit your wealth transfer objectives.

Eric Pasquini & Jessica Aquiler @ Belco
Retirement & Investment Services may be
reached at 717-720-6220.
https://www.CBSinvestorconnection.com/Advisors?cuid=03701254

Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/
SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the nancial insti-tution to
make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Finan-cial
Institution Guarantee. Not a deposit of any nancial institution.
Important message: the information contained in this message or any attached document is condential and
intended only for individuals to whom it is addressed. If you got this message in error, please inform me
imme-diately. I may ask you to return the documents at my expense. In general, please simply destroy the
infor-mation at once. Any unauthorized use, distribution, or copying of this information is prohibited.
is material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting
party, nor their aliates. is information has been derived from sources believed to be accurate. Please note -
investing involves risk, and past performance is no guar-antee of future results. e publisher is not engaged in
rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage
the services of a competent professional. is information should not be construed as investment, tax or legal
advice and may not be relied on for the purpose of avoiding any Federal tax penalty. is is neither a solicitation
nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied
upon as such. All indices are unmanaged and are not illustrative of any particular investment.
(“Tell Your Beneciaries” continued on page 11)
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