Think this couldn’t happen to you? Think again. This is exactly what happened in a recent, highly publicized legal battle involving Margaret Losinger, her former boyfriend Jeffrey Rolison, his estate, and Procter & Gamble, where he was employed for over 28 years.
In this article, we’ll delve into this astonishing real-life scenario, the critical lessons it imparts, and how having a reliable advisor at every stage of life can prevent you from making similar errors—or worse, ignoring potential risks entirely.
The Costly Oversight That Could Happen to Anyone
In the late 1980s, Jeffrey Rolison dated Margaret Sjostedt, and they shared a home. During this period, Rolison worked at Procter & Gamble, where he enrolled in a profit-sharing and savings plan, designating Sjostedt as the sole beneficiary of his retirement account in 1987. The relationship ended two years later, and they parted ways. Sjostedt eventually married and took the last name Losinger.
However, Rolison never updated the beneficiary designation on his retirement account. In 2015, Rolison passed away at age 59, single and without children, leaving no will or instructions on who should inherit his assets. His retirement account, which had grown to $1.15 million, was still designated to Losinger, his ex-girlfriend from nearly three decades prior.
Rolison’s brothers were stunned to discover that Losinger was still the beneficiary of his retirement account. They were convinced their brother would not have wanted his long-ago ex-girlfriend to receive his life savings. In 2017, they filed a lawsuit against Procter & Gamble and Losinger, attempting to have the funds redirected to Rolison’s estate.
After four years of legal wrangling, on April 29, 2024, an appeals court ruled that Losinger was entitled to the money. Rolison’s family not only lost their claim to the million-dollar retirement account but also had to bear the costs of legal fees and court expenses.
To ensure this doesn’t happen to your family, take action now.
Why Even “Simple” Estates Require Professional Guidance
You might think estate planning is only necessary for the wealthy or the elderly. This case proves otherwise. Rolison wasn’t wealthy when he designated Losinger as his beneficiary, and he likely wasn’t wealthy when they broke up. But due to a lack of proper estate planning, his ex-girlfriend became wealthy at the expense of his family.
What is Estate Planning?
At its core, estate planning ensures that all your assets go to the people you want, in the way you want, with minimal effort, cost, and conflict. It also ensures that if you become incapacitated, your wishes are honored with as little disruption as possible.
Most importantly, estate planning is about your choices and freedom. If it’s important to you to decide what happens to your hard-earned assets and how your loved ones are taken care of, you need an estate plan. Without one, the government decides on your behalf, and the outcome may not align with your wishes.
How Beneficiary-Designated Accounts Fit Into Your Estate Plan
Beneficiary-designated accounts—such as retirement accounts or life insurance—are crucial elements of your estate plan. These designations override any will or trust you might have, even if they were made decades ago.
In Rolison’s case, a will wouldn’t have helped. His beneficiary designation on file took precedence, leaving his family powerless to change the outcome. This story underscores the importance of reviewing these designations regularly.
Beneficiary forms are powerful. They determine who gets your retirement accounts, life insurance policies, and bank accounts, often taking precedence over your will. If your designations are outdated, the person named on that form will receive the assets, regardless of your current intentions.
Why You Need Regular Reviews of Your Accounts and Beneficiary Designations
Rolison’s case shows how easy it is to forget about beneficiary designations, especially when they were completed years ago. Neglecting to update them can lead to unintended consequences and legal battles for your loved ones.
While Rolison’s brothers argued that Procter & Gamble failed to inform him about his beneficiary designation, the court ruled that the responsibility lies with the individual. Most companies do not remind you to review and update your beneficiary accounts—when was the last time your bank or life insurance company did?
If reviewing your beneficiary designations isn’t already a priority, it should be. Your life is busy, but forgetting this crucial step could cost your loved ones dearly. Regular reviews and updates are essential.
The Power of Consistent Estate Planning Oversight
We all know we will die, but we don’t know when. Planning for it might be the last thing on your mind, but it’s crucial. “Later” could come sooner than you think.
Having a trusted advisor to guide you through the process can make all the difference. That’s why my estate planning process includes regular check-ins and reviews of your plan, including your beneficiary accounts. I’ll remind you to update your plan and keep you accountable, ensuring your current wishes are always reflected. Together, we can prevent your family from facing the same fate as Rolison’s.
Let Us Handle the Details, So You Can Focus on Life
Planning for your death and incapacity can be daunting, but we make it easy. We handle the heavy lifting so you can focus on your family, work, and personal life. As your estate planning attorney, I help you create a comprehensive plan that ensures your loved ones stay out of court and conflict and that your plan works when needed.
Already have a plan with us? Watch for our reminders to review and update it. Need to update due to a life change? Contact us today.
Schedule your complimentary 15-minute consultation or call us at 619-354-0770 to learn how we can help protect your family and ensure your wishes are honored.
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