…Not if you have out-of-date beneficiaries on your financial accounts. There are many situations where a divorce has been settled years prior to a death, but the beneficiaries were never changed. Children are fighting over mom or dad's IRA's or 401(k)s turns into a very messy situation! Here are some things you can do to avoid this.

1. Your will has no jurisdiction. Accounts with beneficiary designations - such as IRAs, 401(k)s, insurance policies and annuities - aren't governed by your will. So even if you wrote an ex out of your will or trust eons ago, he or she would still get, say, your IRA if you never changed its beneficiary. Note to Self: Review choices periodically, especially after major life events, such as children, divorce death, change of job. Don't leave beneficiary forms blank. Accounts will go to probate court for distribution, and the judge will decide who gets what.

2. You can - and should - name a runner-up. Just as the Miss America judges pick a No. 2 just in case - remember Vanessa Williams? - so should you- pick a contingent beneficiary for your accounts. Otherwise, if your primary beneficiary dies before you, the account goes to probate (A BAD and Expensive Event). Naming a No. 2 also gives the primary the option to execute a qualified disclaimer, which passes the inheritance to the contingent without gift taxes.

3. Retirement accounts have quirky inheritance rules. With IRAs and 401(k)s, there are advantages to naming a spouse over a child. Your spouse can roll over such accounts into his or her name, thus postponing distributions and taxes until age 70½. But if your kid inherits, she must start taking distributions - and paying tax on them - the year after your death, (Regardless of estate taxes, retirement account recipients pay income taxes on payouts.) Beyond that, planning is necessary pending your family situation.

4. Do you have a Minor named? That is a quick ticket to probate. In California, the court must supervise the distribution of money left to kids under 18 - a slow and potentially costly process, usually approximately 16-18 months in CA. Plus the costs are approximately 5% of your entire estate. And of course, it's a public process! Creditors and Predators’ will be after your kids’ inheritance during this process!

5. Changing beneficiaries is easier than changing the “bag in your trash can”, well for most trash cans at least… Many financial firms make beneficiary forms available online. You can also call to request them. (Or if this task will end up last on your long to-do list, give me, the Soto Law Group, permission to contact the institutions for you and we can change them). Yes, I know it is time consuming but a necessity that needs to be done NOW.