Be sure to check your beneficiary designations for all retirement accounts.  If there is no documentation for designation of a beneficiary, federal or state law will decide who ultimately gets the money.  There have been plenty of court cases involving retirement account owners who have divorced or remarried but neglected to update their beneficiary designations accordingly.   Or if the beneficiary documentation is not changed after the birth of a child, the original designations will prevail unless the survivors are willing to take on a court battle.

In some instances, failure to designate beneficiaries could result in retirement accounts going into the estate, causing unintended tax consequences.  So when a change in family status occurs, don’t forget to update retirement account beneficiary designations.