Automatic (for the most part) changes in 401k beneficiaries

Always with their finger on the pulse, the WSJ recently published this article on changes that occur to 401k beneficiaries when a participant spouse gets divorced, remarries or dies without changing the name of his or her former spouse as beneficiary.  The rules surrounding IRAs and 401k plans are incredibly complex, and for 401k plans, there is the additional complexity of ERISA laws, which preempts California community property laws in most cases.

Wall Street Journal on Disinheriting a Child

The WSJ published an excerpt from a new guide by Rachel Emma Silverman on how to effectively give one of your children less money than the rest.  I work strenuously to talk clients out of this because it will in most cases cause resentment between the child who gets less and any other children or beneficiaries.  Nevertheless, clients sometimes have good reasons for doing it.  Ms. Silverman does a good job of summarizing what to think about if you are considering an unequal distribution plan.