Letter to Client Regarding Changing Beneficiary and Fiduciary Designations
[Date]
[Name and address of client]
Re: [style of case]
[Salutation]
The [granting of a divorce/granting of an annulment/declaring of a marriage void] will cause significant changes in the beneficiary provisions of your employee benefits, will, trusts, life insurance, and other financial plans.
The Texas Family Code declares that the designating provision of your retirement plan or other employee benefit in favor of your former spouse is ineffective. You should contact your plan administrator immediately and arrange to change the designation to an alternate beneficiary.
The Family Code also declares that any provisions in your life insurance policies in favor of your former spouse are ineffective. This fact could lead to unintended consequences, so you should contact your insurance agent to make any necessary beneficiary changes.
The Texas Estates Code declares that, unless the will provides otherwise, all provisions in your will, including trusts as well as fiduciary appointments, are read as though your former spouse predeceased you. The Estates Code also revokes certain beneficiary designations in multiparty financial accounts and nontestamentary transfers such as revocable trust instruments in the event of a divorce. Additionally, if you have executed a transfer on death deed, it would be advisable to take action to revoke the deed. You should obtain the services of an attorney to determine what this means to your estate plan and assist you with any changes.
Other financial documents, such as certificates of deposit and accounts with rights of survivorship, should also be reviewed to determine what impact the termination of marriage will have.
Needless to say, these steps should be undertaken immediately.
Sincerely yours,
[Name of attorney]