You work hard, for many years, accumulating your wealth, financial assets and insurance plans to make sure that your family is taken care of when you’re gone. But it never fails, at one point or another, the thought crosses our mind, “Am I certain my beneficiaries are correct?”
Some of the most common mistakes when it comes to beneficiaries are the following:
- Not naming a beneficiary – By not doing so, your assets will go through probate, but in the case of a retirement or insurance plan, there may be a contract provision that designates a default beneficiary, who may not be who you intended.
- Naming your estate as your beneficiary – When this is done, it goes through a probate and can be more limiting than if you names a spouse or non-spousal beneficiary.
- Outdated beneficiaries – You may not want the person that gets your benefits to be the one to receive them if they’re out of date.
- Naming minors as direct beneficiaries – When that child turns 18 or 21, depending, they will be paid out directly. Handing a large lump sum of money to an 18-year-old may not be the best decision.
These are just a few of the commonly made mistakes. There can be more complications if your beneficiaries are not taken care of. For help with those scenarios and to help and your questions, we’re here. Let’s talk.read more