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Review your named beneficiaries on retirement accounts, bank accounts, annuities and life insurance policies annually and after major life changes.
A beneficiary designation is a contract thus it supersedes your Will. Most people do not realize that the law or a beneficiary designation determines who inherits an IRA or 401(k). Failure to have up-to-date beneficiary designations may result in your assets being distributed against your wishes.
Examples of common mistakes:
Divorce - Failing to remove their former spouse from their Will soon after their divorce. If the beneficiary of retirement accounts, annuities and life insurance policies are not changed, the former spouse may receive those assets upon death.
Children's Trusts- Failing to change the trustees or beneficiary on life insurance policies from the trust.
Singles - Failing to remove parents or siblings as beneficiaries after marriage. |
