5 Things You Need to Know About Same Sex Marriage & Retirement Accounts (guaranteed inheritances?)

Is DOMA dead ? Same sex marriage is winning case after case in the federal courts, granting a right to marry to gay couples across the US.  Why isn’t anyone talking about the “guaranteed” inheritance whichsame sex couples get by marrying?  While everyone is focussing on the death of the Defense of Marriage Act and the right of same sex couples to marry, consider the inheritance rights to retirement accounts of a new spouse.   Here are 5 things which you may want to know about same sex marriage and retirement accounts.  It could be worth millions.

1. Marriage creates inheritance rights.  In some states, like Florida, you “get” a “guaranteed” inheritance of 30-50% of your spouse’s estate!  Just by being married to that person. (Unless you waived those rights in writing.)  And here’s the kicker:  duration of marriage doesn’t matter.  If you were married for ten seconds, you still haveguaranteed inheritance rights. So, while a lot of gay couples or newly married same sex couples who marry are focussed on the right to marry, and the right to divorce, consider the millions, billions at stake in probate rights and inheritances.
2. Federal Law creates inheritance rights in retirement accounts.   Federal law gives the spouse, a validly married spouse, certain rights to be the one and only beneficiary of retirement accounts.
3. Retirement Accounts = Billion$.   Most people’s estates are a car, checking account, a house, some personal property, maybe some investments and a retirement account.  The retirement account is usually a major asset of one’s estate.  There are billion$ of dollar$ in American’s retirement accounts.
4. Inheriting the Retirement Account. A spouse who just lost another spouse may still be able to inherit the retirement account even if someone else is the named beneficiary on the beneficiary designation!  Even if the retirement account named the estate as beneficiary.  Facts can differ and one can waive their rights, consent to another beneficiary or sign away those rights in a waiver or prenup.  Know your rights to retirement accounts as a widow or surviving spouse.
5. Probate Litigation? With billions at stake, you guessed it, there will be a fight for your wealth.  So, don’t be surprised if the financial company where the retirement account is located at won’t pay you your inheritance from the retirement account because someone else is named.  Don’t be surprised if the executor of the will or the personalrepresentative of the Probate won’t recognize your marriage or your rights to inheritance, especially in a state like Florida.