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Time To Update Those Forms!

Hi Everyone,

Happy Wednesday!!! I hope everyone enjoyed their Thanksgiving and had a fabulous break. 

This week we’re discussing beneficiary designations

The simple rule of thumb is that beneficiary designations dictate all.  For example, if you have a life insurance policy and you list your spouse as the primary beneficiary and a child as the contingent beneficiary, those are going to be the people who inherit that money if you die, regardless of what your will or trust dictate. 

If a beneficiary designation is a single individual, that person can legally do whatever they want to with those funds.  They are not required to share the asset with anybody else.  Once it’s their property it’s theirs so you cannot expect that they will share it with any other relatives.

Another common issue occurs when minors are listed on beneficiary designation forms.  Remember, minors cannot inherit money.  In order to avoid court interference, you must list you family trust as the beneficiary as opposed to the minors outright.

As we’re ending the year, it’s important to check your beneficiary designations and ensure you have all of your assets pointed in the right direction.  This is one of those necessary end-of-the year housekeeping tasks.

Please contact us today if you need guidance on designating proper beneficiaries, or if you need to create a trust to avoid unnecessary court interference.  

Until next time,

Amy