Make Sure to Update Your Beneficiary Designations

Did you know that beneficiary designations can become a huge problem if they are not updated? Beneficiary designations on your retirement accounts, IRAs, annuities and life insurance policies override what’s in your will. This means that people you don’t intend to inherit your assets could in fact get your money if you were to die.

There are hundreds of stories where husbands and wives get divorced, and forget to change the beneficiary designations on their life insurance or retirement plans. When they die, their money goes to their ex-spouse, rather than their kids or their new spouse.

Not only do beneficiary designations trump the will, but joint tenancy trumps the will. Let’s assume you want your house to be passed on to your children after your death, and leave your house in a will or trust to them. If you have a joint tenancy with your wife, then the will and trust mean nothing. You can effectively disinherit someone unintentionally.

These examples represent just the start of the complexities involving beneficiaries, attorneys and financial advisor reports. We can help you cut through the noise and create or update your estate plan.