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For financial Advisors 401k Beneficiary Mistake If you are a financial advisor, or if you have gone through a divorce, one of the biggest and most expensive surprises after a death is discovering that the named beneficiary on a retirement account is still an ex-spouse. Many people assume that getting a divorce automatically wipes out their ex-spouse's right to receive their funds. Under Texas Family Code, that is generally true for standard bank accounts or Texas-regulated life insurance policies. But there is a major trap: this rule does not apply to 401(k) retirement plan accounts or employer-sponsored plans. Because 401(k)s are governed by federal law (ERISA), federal preemption takes over. Under ERISA, the plan administrator is legally bound to pay whoever is listed on the beneficiary form—even if the divorce happened ten years ago. This rule was firmly settled by the U.S. Supreme Court in the Kennedy case. In this video, I explain how these rules work and why it is critical for financial professionals to sit down with their clients to review and update their beneficiary designations regularly. If you are an investment advisor with a client facing a disputed beneficiary claim, or if you are a family member of an account owner dealing with a dispute in Texas, feel free to reach out to me. I am happy to hear your scenario and share my thoughts with no obligation. šŸ“ž Call my office: (800) 323-1857 🌐 Learn more about Texas probate litigation: https://www.txprobatelitigation.com/ Texas Probate Lawyer Contested Estates Texas Contested Life Insurance Claim Beneficiary Designation Dispute ERISA Preemption Beneficiary 401k Beneficiary Rules After Divorce Texas Family Code Divorce Beneficiary Former Spouse Beneficiary Law US Supreme Court Kennedy Case Financial Advisor Compliance USA Estate Planning Checklist USA Ex-spouse Life Insurance Claim Account Beneficiary Updates Inherited Retirement Account Dispute Texas Estate Litigation Attorney Fiduciary Duty Investment Advisor Revocation on Divorce Texas Law Federal vs State Probate Law Disputing a Beneficiary Designation Free Legal Consultation Texas Probate

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