Q&A I want to keep things simple. Can I leave my 401K to my kids and our house to my wife?

QUESTION

Q: I want to keep things simple. Can I leave my 401K to my kids and our house to my wife?

— Clean and Simple

ANSWER

A: Navigating the division of retirement assets in estate planning requires careful consideration and is subject to legal regulations. By default, your spouse is typically entitled to a portion of your 401K. To designate your 401K benefits to someone else, like your children, your spouse would have to agree by signing a Spousal Waiver.

Alternatively, rolling over your 401K into an IRA could present more flexibility in choosing beneficiaries and may not require spousal consent, depending on state laws.

For a comprehensive approach that encompasses all aspects of your and your family’s well-being, including financial, legal, and personal values, engaging in Life & Legacy Planning with a Personal Family Lawyer® is advisable. This service goes beyond mere document preparation; it ensures that your estate plan reflects a holistic understanding of your life and legacy. A Personal Family Lawyer® is equipped to guide you through creating a Life & Legacy Plan that honors your values and provides clear directives on how your assets are handled, ensuring your legacy