All Of Your Retirement Accounts Are in Your Husband’s Name. Is That a Risk?
I'm Michael Walstedt, a fee-only wealth advisor at Reliant Wealth Advisory, based in Hoboken, NJ. I work with tech employees on equity compensation, IPOs & concentrated stock decisions. Click here to book a free strategy session.
It's a question I hear in some form from a lot of newly retired couples: "My husband and I just retired. All of our investment accounts are in his name only. Is there any risk in that?"
The short answer: it's very common, and often unavoidable. IRAs and 401(k)s can only be owned by one person. There's no such thing as a joint IRA. So if your husband did most of the saving through his job, most of your retirement money will be in his name.
The name on the account isn't the real risk. Two other things are.
Risk 1: The beneficiary form
When someone dies, retirement accounts don't follow the will. They go to whoever is named on the beneficiary form. If that form is outdated, blank, or still lists an ex-spouse or a parent, the money can end up somewhere you never intended.
401(k)s offer some protection. Federal law generally requires the spouse to be the beneficiary unless they signed a waiver. IRAs don't have that rule in most states. And once a 401(k) is rolled into an IRA at retirement, which is common, that protection usually goes with it.
The fix is simple: confirm you're listed as the primary beneficiary on every account, and see the confirmation yourself rather than taking anyone's word for it.
Risk 2: Incapacity, not death
Most couples plan for what happens if one of them dies. Far fewer plan for what happens if one of them can't make decisions anymore.
If your husband has a stroke or develops dementia, being married doesn't give you the right to manage accounts in his name. Without legal authority, you may have to go to court for a guardianship, which is slow, expensive, and stressful at the worst possible time.
A durable financial power of attorney, signed now while he's healthy, lets you step in right away. Some banks and brokerages also have their own forms, so it's worth checking with each one.
Three things to do this month
Check every beneficiary form: and keep a copy of the confirmation.
Sign durable powers of attorney: for both of you, not just him.
Make a list: every account, where it's held, and who to call.
None of this takes long. But it's the difference between a hard moment and a crisis.
I'm Michael Walstedt, a fee-only wealth advisor at Reliant Wealth Advisory. I help couples plan for retirement decisions like this one. If you have questions about anything mentioned above or general questions about retirement planning, click here to book a call or find some time below:
This article is for educational purposes only and is not legal, tax, or investment advice. Consult a qualified estate planning attorney about your situation.
