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Avoid Common Missteps When Naming Beneficiaries

Avoid Common Missteps When Naming Beneficiaries

June 22, 2023

You already know that naming beneficiaries for your retirement accounts, life insurance policies and other assets is a critical component of estate planning. We want to call out a few common gaps we see in this process so you can avoid unintended consequences regarding your estate.

Naming Unavailable Beneficiaries
One of the most common mistakes people make is naming an unavailable beneficiary, such as an irresponsible heir, a minor or someone with special needs. This decision can result in additional costs or delays that can cause added stress to the inheritance process. Naming a trust may be a good option in this case.

Naming Outdated Beneficiaries
It’s best to revisit beneficiaries at significant life events. If your beneficiary has passed, the assets may pass to their heirs. Similarly, if you have divorced or remarried, your ex-spouse may receive your assets. Revisiting your beneficiaries may help ensure your intentions overtime.

Not Naming Contingent Beneficiaries
Having contingent beneficiaries serves as a backup if your primary beneficiary cannot take your assets for any reason. This can help prevent your assets from going to the wrong people, to people designated by state law or even to the state itself in some circumstances.

Estate planning can be a complicated process, and oversights can be costly. If you want to review your current beneficiaries or think you may need to make a change to an existing beneficiary on an insurance policy or as part of your estate plan, let’s schedule a time to talk.

For discussion purposes only and in no way represents legal or tax advice. For advice regarding your specific circumstances, the services of an appropriate legal or tax advisor should be sought.

This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.