The Tragic Life of Katie Maguire

Katie and Tommy’s grandparents came to this country at the turn of the 20th century. They were at the tail end of a mass immigration that brought over 4 million people seeking a better life, from Ireland to the United States between 1820 and 1920. The Maguire clan settled in Pennsylvania where work was plentiful, underground, in the coalmines. The stalwart Maguire men toiled long, grueling hours to provide for their families. The Maguire women were similarly resilient individuals. They stayed at home to raise their children with very little money, and few modern conveniences, but with little complaint. In the early 20th century, Katie’s parents and grandparents moved from Pennsylvania to New York to help build the New York Subway system. While the Maguires continued to work underground, the pay, benefits and working conditions were much improved in New York City. Through their hard work and struggles, the Maguire grandparents and parents paved the way for the next generation of Maguires to continue to move up the economic ladder.

Katie was part of a family of 7 brothers and sisters who grew up on Long Island (N.Y.). This generation of Maguires climbed into the economic middle class with jobs titles such as teacher, police officer, manager, administrative assistant, secretary, counselor, etc.After graduating Hicksville High School, Katie began her employment career as a cashier at Pathmark Supermarkets. For those of you who aren’t familiar with the company, Pathmark is a 140-store supermarket chain operating in the Northeast. Katie began working there at age 18 and continued working there until shortly before she died at age 54---yes that’s 36 years. Katie was married once, for a very short time in her 20’s and never had any children.

Katie had a problem with alcohol. Tommy told me that Katie had a normal childhood and never manifested any problems with drugs or alcohol while growing up in the Maguire home. As an adult, it seemed to him that she often had a drink too many at family functions, but continued to function well and didn’t appear to have a serious problem. And Tommy is a very credible source when it comes to addictions. After experiencing a few problems himself with drugs and the law in his younger days in the U.S. Navy, Tommy became a dependence counselor and has been helping others with dependencies for over 30 years.

In the last 10 years of Katie’s life, the alcoholism took over and she began a serious downhill slide. Tommy, her long time employer Pathmark, and her other concerned siblings intervened, sending Katie to various Rehabilitation Centers throughout the years. However, the efforts were, tragically, to no avail. Katie died in June 2007, from the effects of alcohol at age 54. She died alone, some 60 pounds, less than half of her normal weight.

6 months before Katie died she engaged the services of a local lawyer and had her will prepared. She obviously saw her health declining, and wanted to be sure that her estate would pass smoothly to her siblings. Her will left her entire estate to her 6 brothers and sisters in equal shares.

Katie never made a lot of money at Pathmark. She worked her way up from cashier to store manager during her 36-year career. Tommy believes that with her work ethic and her intelligence, she would have climbed faster and higher up the corporate ladder, had it not been for her alcohol issues.

After the funeral, the siblings met with Katie’s lawyer to review her assets. At the time of her death, her assets consisted of a very small home with a mortgage, a small bank account, and a 401k account at Pathmark. Well, it turns out (this should come as no surprise to any of you by now) that small contributions to pension accounts actually do accumulate to large sums of money over time. Katie had, in fact, over $600,000 in her Pathmark 401k plan. It appeared that Katie had left a nice legacy for her brothers and sisters.

After contacting Pathmark, the siblings found out that Katie had a very old Designation of Beneficiary form on record that she had filled out many, many years prior. On the form, she had designated her ex-husband Kevin as the 100% beneficiary. Katie and Kevin hadn’t spoken for 25 years!

The family located Kevin, who was living on a boat docked not very far away on Long Island Sound. They told him about the gross oversight and asked him to release his claim on the money. Kevin seemed sympathetic, and made some overtures about sharing his booty, but, ultimately, decided not to share any of the money with the Maguire siblings.

The siblings asked Pathmark to rectify the oversight. The company’s lawyers told them that according to the law, the Designation of Beneficiary form is the final word, regardless of what is contained in the will. The attorneys recommended that the family go to Court and bring the issue before a judge.

The Judge who heard the case was very sympathetic to the family, and I am told he even hinted to Kevin (the ex-husband) that the right thing to do would be for him to settle with the siblings. Ultimately, the Judge had to follow the law and ruled in favor of the ex-husband. As the Pathmark attorneys had explained, The Designation of Beneficiary form always trumps the language of the Will.

Tommy asked me to write this article in order to warn as many people as possible not to repeat Katie’s mistake. Katie worked an entire lifetime, accumulating money in her 401k plan that, ultimately, was left to the wrong party. It was left to a person who was a virtual stranger to her at the time of her death, rather than to her beloved siblings who had been by her side her entire life. While her life may be considered a tragedy in itself, the final financial details make it even more tragic.

Unfortunately, this is not the only such tale we have heard over the years. There have been other, ineffably sad stories that I will never forget. The courts are loaded with similar cases, but the beneficiary form always trumps all other documents, despite the gravity of the injustice. So check all of your IRA's, 401k's, Life Insurance Policies, Annuities, Pension Plans, 403b's etc., and make sure all of the Beneficiary Designation forms are up to date. Check your wills and trusts as well, to be certain they reflect your current desires and that they contain no unintended surprises for your loved ones. It is highly advisable to keep all of these documents, policies, etc., organized in one location, in order to easily refer to them and ensure they are kept up to date.

The Maguire saga, a uniquely American tale, starting with a steerage ticket on a boat from Ireland to the U.S., and winding its way through the dank and dirty coalmines of Pennsylvania and the stifling hot subway tunnels of NYC, doesn't end with the death of Katie. After all, there are 6 remaining siblings who have had children and whose children now have children. Each generation of Maguires will likely continue to rise higher up through the economic and educational strata of our country. But, what of Katie herself? Will she be remembered, or will she be just one of the billions of people who have walked this earth, about whom we can say, "she lived, she died, barely made a ripple in the sands of time, and will be completely forgotten in a generation?”

That's why I write about her today. Perhaps you will be inspired by her story to pay closer attention and to try even harder to help a troubled family member or friend who is struggling. At a minimum, I hope her story will lead you to make sure your family doesn't have to suffer the consequences of the same type of estate/financial planning mistake made in this case.

And finally, take a moment out of your busy day, reflect on the life of Katie Maguire and ask yourself the following question; What impact will your own life have on the next generation? Will you leave a positive and lasting legacy on this Earth or will you be part of the vast majority of people who don’t. If you are living, there still is time to create something positive--do it in memory of Katie Maguire (1953-2007.)

Until next time,

Austin A. Frye, MBA, JD, CFP®

If you know of someone who may enjoy reading this newsletter, click here.
Don't keep us a secret!

Securities and advisory services offered through LPL Financial-- Member FINRA/SIPC