Death

Article Dean Dorton

John BalbachWith heavy hearts, we share the news of the passing of our dear friend, colleague, and partner, John J. Balbach.

John was a native of Louisville and alumni of St. Xavier High School. Balbach graduated from Murray State University in 1974, with a degree in accounting. He began his accounting career with Charles R Hatton & Company, moving on to Geary, Balbach & Hardt until it was sold to Arthur Young. He joined Cotton and Allen in 1986 and was later named a partner in the Firm. His practice was focused primarily on income taxation and estate planning. Balbach was also involved in business consultation including business transactions, and design and implementation of accounting systems. With more than 40 years in the accounting practice, 30 of which were at Dean Dorton Allen Ford, Balbach distinguished himself as a notable Louisville business advisor, with retirement just last year in 2016.

His favorite memory at Dean Dorton was serendipitously discovering other Murray graduates at the firm. He was actively involved in the community, sitting on boards and committees for the Tom Sawyer State Park Foundation, Our Lady’s Rosary Makers, St. Margaret Mary Church, United Crescent Hill Ministries, and his home owners’ association.

During retirement, Balbach spent much of his time enjoying trips around the world including Germany and Alaska with his wife, Cathy, and spending lots of time with family (including two young grandsons) and friends.

“John was more than just a partner working at a local accounting firm. His exceptional personality made him a valued resource for many clients and a business advisor of the highest caliber. He was one of the kindest people I have ever worked with and made every day of “work” a pleasure. John cared deeply for all of his clients and colleagues whom he considered friends,” says Gwen Tilton, Louisville Managing Director. “John touched so many lives for the good. We are truly honored and grateful we were a part of his career and life for so many years.”

Visitation will be held from 2-8 p.m. Friday, July 7, 2017 at Ratterman Funeral Home, 12900 Shelbyville Road, East, Louisville. Mass of Christian Burial will be celebrated on Saturday, July 8, 2017 at 10 a.m. at St. Margaret Mary Catholic Church, 7813 Shelbyville Road, Louisville.

In lieu of flowers, the family has requested donations be made to St. Xavier or Trinity High School Annual Funds.

Article Dean Dorton

Most assets of which we are the sole owner pass at death according to the terms of our will and beneficiary designations of retirement plans and life insurance.

In a real example from a dispute that went all the way to the U.S. Supreme Court, a daughter had an “unpleasant” outcome when her father passed way. Her father’s ex-wife was awarded $400,000 from his retirement plan even though she had waived any interest in the plan in the divorce and property settlement agreement.

What happened? The father failed to update his beneficiary designation form to name his daughter as beneficiary. When he died seven years after the divorce, his former wife was still named as the beneficiary upon his death. The employer’s plan document stated that beneficiaries could only be changed by submitting the required form. The Court held that the administrator of an ERISA-covered benefit plan need only look to the governing plan documents to determine the proper plan beneficiary.

This case reminds us of some very important points:

  • Do not rely on documents such as a divorce decree, property settlement agreement, or a will to name beneficiaries of life insurance policies, retirement plans, 529 college savings plans, and annuities. Determine the currently named beneficiary for all such assets and, if you want the designation to be changed, obtain the proper forms to change your beneficiary designation and complete and properly submit the forms. Keep copies of the completed forms with your will and other testamentary documents.
  • Divorce is not the only situation where failing to update your beneficiaries can cause problems for intended heirs. You may want certain benefits to go to specific children. Their financial or medical situations may have changed. Remind yourself to do an annual “check-up” to review beneficiaries. This should include primary and contingent beneficiaries. It is important to include a secondary beneficiary in case the primary beneficiary predeceases you.
Please contact Missy DeArk at mdeark@deandortonstg.wpenginepowered.com if you have questions about this important topic.