Protecting Your Family

The single most important document in your estate conservation strategy might not be your will or any of the other instruments that you probably paid an attorney to create such as Revocable Living Trusts. In fact, what is likely to be your single most valuable asset will convey directly to your heirs without going through probate or any of the typical estate distribution channels.

In this case, the asset is your retirement savings, and the document is the retirement account beneficiary form. Because your beneficiary designations will override any instructions in your will regarding who will inherit your IRA or employer-sponsored retirement plan, ensuring that the correct beneficiary is named on the account form might be the easiest, most inexpensive step you can take toward a sound estate conservation strategy.

Yet experts say it is fairly common for beneficiary designation forms to be outdated. This can be an especially serious problem when a beneficiary was named years ago and the designation was never reviewed. Then, because of life events — marriage, divorce, birth, or death — the named beneficiary is no longer the person whom the account owner wishes to inherit the money. If this information doesn't come to light until the account owner’s death, it’s too late to do anything about it. The custodian of the plan has no choice but to follow the instructions on the form, even if it means the decedent’s children are deprived of their inheritance because a former spouse or now-estranged family member was the designated beneficiary.

Fortunately, there’s an easy fix to avoid this scenario. Regularly reviewing and updating your beneficiary designations can help ensure that your loved ones inherit your retirement savings.

Foreclosures Stoppage Awaiting Obama's Plan

Citigroup, Chase, Bank of America, Wells Fargo, Morgan Stanley, Bank of New York, and greed to suspend foreclosures to give time to the Obama administration as it continues to craft a housing plan to modify mortgages for troubled borrowers.

Citigroup will halt foreclosures through March 12, or until a plan is completed, the company said Friday. Wells Fargo said its moratorium is in place until a plan is announced. The other lenders said foreclosures will be stopped on owner-occupied homes until March 6.

Fannie Mae and Freddie Mac said they will suspend foreclosure sales involving occupied single-family and two- to four-unit residential properties through March 6.