Turn Back the Hands of Time


Turn Back the Hands of Time

A retired Naval officer, 60, came to me for estate planning after divorcing his wife of 30 years and remarrying a much younger woman with minor children. He seemed eager to get his financial affairs in order—perhaps because of underlying health concerns.

From the start, it was clear his new wife had little interest in the process. She was disengaged, even disrespectful, making it difficult for us to make progress. To avoid further tension, I gave them a worksheet to complete at home and asked them to return when they were ready. That was a year ago. They never came back.

Then I got a call from the attorney who had referred them. The husband had passed away, and his widow- the same disinterested spouse-was now trying to claim his veteran benefits. But there was a problem. One I had anticipated.

Although the divorce decree hadn’t granted his first wife the Survivor Benefit Plan (SBP), she had filed a "deemed election" form with the Defense Finance and Accounting Service (DFAS) within the required year after their divorce. That single act secured her right to receive up to 55% of his military pension for life.

The new wife, however, was never added as the SBP beneficiary-and after a year, changes can’t be made without the former spouse’s consent. The necessary consent was not provided. Now it’s too late.

The outcome: the first wife will receive the SBP; the widow receives nothing.

Moral of the story: You can change your spouse, but if you don’t change your paperwork, your ex may be the one who gets paid—for life.

Some things, once missed, can’t be undone. And I suspect the widow now understands that all too well and wishes that she could turn back the hands of time.

Bye for now,

Brenda “Bren” Sheriff, CSA

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QUIZ: Are all veterans entitled to veteran benefits?

 

Answer to last week’s quiz: A Long-Term Care Ombudsman Program is a federally mandated, resident-directed advocacy program that protects and improves the quality of life for residents in long-term care facilities AKA Nursing Homes.

To get a more detailed answer to last week’s QUIZ question or for any financial questions that you may have, please contact me: 773-817-0601 or basheriff1@gmail.com

Disclaimer: The illustrations presented in this column are not, nor are they intended to be, legal, financial, or any other licensed professional advice, you should contact the licensed professional of your choice for advice on your individual situation.


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