A Cautionary Tale That Every Chicago Estate Planning Attorney Has Seen
Imagine this: You’re in your twenties, just starting your career. You fill out a form at work, naming your live-in significant other as the beneficiary of your retirement account. You start contributing to your retirement account, and it begins to grow. Fast forward 28 years – you’ve long since ended that relationship, lived a full life, and then died. But you never changed that beneficiary designation, and now that ex-partner is entitled to your million-dollar retirement nest egg while your family is left with nothing.
Sound far-fetched? It’s not. This is precisely what happened in a high-profile lawsuit involving Margaret Losinger and her former boyfriend, Jeffrey Rolison, and his estate and Proctor and Gamble, the Company he worked for during those 28 years.
Here’s a closer look at this shocking real-life story, the lessons we can learn, and how having a trusted Chicago estate planning attorney at every stage of life can protect you from making a million-dollar mistake like this or any other mistakes that you just might be overlooking.
The Million-Dollar Mistake That Any Estate Planning Attorney in Illinois Could Have Prevented
In the 1980s, Jeffrey Rolison dated Margaret Sjostedt, and the two lived together. Rolison worked at a Procter & Gamble (P&G) plant, where he signed up for a profit-sharing and savings plan. In 1987, he listed Sjostedt as the sole beneficiary of his retirement account. The relationship ended two years later, and both moved on. Sjostedt eventually married, taking on the last name Losinger.
Rolison, however, never updated his beneficiary designation on his retirement plan. In 2015, Rolison passed away at age 59, single and childless, with no will and no guidance on who should inherit his assets. His retirement account, which had grown to $1.15 million, was still designated to Losinger, nee Sjostedt.
Rolison’s brothers, Brian and Richard, were shocked when they learned that Losinger was the beneficiary of Rolison’s retirement account. They believed their brother wouldn’t have intended for his long-ago ex-girlfriend to receive his retirement savings. The brothers filed a lawsuit against P&G and Losinger in 2017, trying to get the money directed to Rolison’s estate.
On April 29, 2024, an appeals court issued an order, ruling that Losinger was entitled to the money. After fighting for four years, Rolison’s family lost their claim, the million dollars in Rolison’s retirement account, and all the legal fees and court costs invested in the fight. Because we have no doubt you wouldn’t want this to happen to your family, read on…
Why Even “Simple Estates” Require a Trusted Estate Planning Attorney in Chicago
Many Illinois residents mistakenly believe that estate planning is only necessary for the wealthy or those with complex financial situations. The Rolison case dramatically illustrates why this thinking is dangerously flawed, and why consulting with an estate planning attorney in Illinois is essential for everyone.
No Estate Is Too Simple for Professional Planning
Even if you consider your estate “simple,” several critical elements require professional guidance from an experienced Chicago estate planning attorney:
- Beneficiary designations that override your will: As our estate planning materials explain, “Not all property changes hands at death through a will and the probate process: Insurance, individual retirement accounts, pension plans and other employee benefits may pass to living persons by virtue of beneficiary designations–not by will and probate.”
- State-specific laws: Illinois has specific laws governing inheritances and probate that may not align with your assumptions.
- Changing family dynamics: Marriages, divorces, births, deaths, and estrangements all impact who should receive your assets.
- Asset growth over time: As the Rolison case shows, modest initial investments can grow substantially over decades.
At McLeod Legal Advisors in Chicago, we’ve seen numerous cases where seemingly “simple” estates became complex nightmares for families due to outdated beneficiary designations, inadequate planning, or missing documentation. This is why working with a knowledgeable Illinois estate planning attorney is crucial regardless of your estate size.
What Estate Planning Is: Freedom and Protection That Your Estate Planning Attorney in Illinois Provides
Most importantly, estate planning is about your choices and your freedom.
True estate planning goes far beyond simply drafting a will. It’s a comprehensive process that ensures:
- Your wishes are honored: Your assets go to the people you choose, not those determined by outdated designations or state law.
- Your family is protected: Proper planning prevents costly legal battles and preserves family harmony during an already difficult time.
- Your legacy is preserved: Your values, intentions, and hopes for your loved ones are clearly expressed and legally protected.
As our Illinois estate planning materials emphasize: “Estate planning is the preservation and the distribution of your assets, both during your life and upon your death. It is accomplishing your personal and family goals and easing the management of your financial and legal affairs.”
This definition highlights that estate planning isn’t just about death—it’s about ensuring your wishes are honored throughout your life and beyond. This is the comprehensive service that a dedicated Chicago estate planning attorney provides.
How Beneficiary-Designated Accounts Factor Into Your Estate Plan: Expert Guidance from an Illinois Estate Planning Attorney
One of the most dangerous misconceptions in estate planning is that having a will is sufficient. The Rolison case dramatically illustrates why this thinking fails, and why you need an estate planning attorney in Chicago to address all aspects of your estate.
Beneficiary-Designated Accounts Bypass Your Will: A Critical Warning from Estate Planning Attorneys in Illinois
Beneficiary-designated accounts – like retirement accounts or life insurance – are part of your estate plan, but they operate under different rules than will-governed assets:
They supersede your will: No matter what your will says, beneficiary designations take precedence. In the Rolison case, even if he had a will leaving everything to his brothers, his 401(k) would still go to his ex-girlfriend because of the