Are Your IRA Assets Accessible ?

[Stoplight]

Well, maybe I’m simple-minded, and the rest of you thought of it already, but here’s something I read about the other day, which really freaked me out...just a “head’s up” for those who never thought of this, either !

In our retirement, we’ve rolled my Wife’s 403(b) accounts into her IRA...I rolled most of my TSP into MY IRA, as well. Remember what “IRA” stands for ? No “joint ownership” there...it’s an "Individual’s" account !!

If/when either of us die, the other is the beneficiary....no problem ! However...what happens if either of us has a stroke, gets dementia, or somehow becomes incapacitated, and unable to manage our account ? The spouse can NOT legally access the other’s IRA !!! :worried:

The article I read cites a financial adviser who had a client whose retirement assets were mostly in his IRA, and the Wife could not touch them, after he became incompetent to manage his finances...

Although there are legal work-arounds (the article mentioned “petitioning the Court”), the recommendation was to have a power of attorney for each other, on both accounts...also recommended having all property as joint ownership...bank accounts, car titles, house deed, etc etc.

For you youngsters, this poses an interesting dilemma...Even though we said “Till death do us part” in our wedding vows, are you willing to let that bum husband, or that cheating wife, have the capability to clean out your retirement account, too ?? For us Old Geezers, we’ve probably gone through all the marriages and divorces we’re going to...I know I have ! :nuts:

Anyway...we joined our Credit Union’s pre-paid legal plan, and will meet with them to discuss this, and our wills, etc. It’s a subject that NOBODY wants to tackle (I know we don’t !), but it needs to be done !!!

Just my advice...


Stoplight...

 

[ILoveTDs]

Talk to your "pre-paid legal plan" guy. But my stuff is all in my trusts name with both me and the wife as trustees. I don't own anything. This would eleminate your concern. Different states might be different.

Did any of you guys see this article.

Supreme Court Favors Ex-Wife Over Widow In Battle For Life Insurance Proceeds - Forbes

 

[Stoplight]

Talk to your "pre-paid legal plan" guy. But my stuff is all in my trusts name with both me and the wife as trustees. I don't own anything. This would eleminate your concern. Different states might be different.

Yeah, one of my Brothers was looking into the whole "Trust" thing...thanks for the advice !

I guess there are also tax implications, too, but I've not gotten into that...guess I have more homework to do !!!

Stoplight...

 

[Stoplight]

While looking into this issue a little further, I was surprised to discover the TSP has a discussion on this very topic, and giving access to your TSP...in fact, they even have a "power of attorney" (POA) pdf form you can download, sign and notarize, and return to them ! Never knew that existed, but never THOUGHT of this issue, either !

Our IRA's are with USAA, so I wasn't as surprised to discover they have the same thing ! Makes sense...since USAA has a heavy involvement with current and former military members, they have a whole boatload of info and recommendations on finances, etc...especially the need for a POA if a spouse gets deployed, etc. ! Also applicable for our use...

What makes this sweet is that we can fill out the USAA POA form, sign and notarize, and submit...and that takes care of our dealings with ALL our USAA accounts...IRA's, life insurance, checking (although that's already a joint account), credit card, car insurance, etc etc.

Next step is to research this same "account access" for OPM and my pension, and the Wife's 2 State Public School pensions...

Good thing I'm a retired, lazy procrastinator, and didn't sign up for the Credit Union's legal service plan yet...don't NEED them !

Stoplight...

 

[Stoplight]

Next step is to research this same "account access" for OPM and my pension, and the Wife's 2 State Public School pensions...

Interesting...it seems OPM does not even recognize a "power of attorney" !

Their web site says to have the designated person "contact them" with your claim number, SSN, etc etc, and they "will be given full instructions" on what to do ! Geez, they could at least give us a hint... :nuts:


Stoplight...