Having a will or trust doesn’t guarantee that your beneficiaries will inherit what you’ve intended for them. That’s because your beneficiary designations on certain types of financial assets—including life insurance, retirement plans, and various other accounts—override the plan you’ve created. How Does This Work? In the event of your death, the beneficiaries you’ve named for those accounts will be legally entitled to receive the assets, regardless of what your will or trust documents say. Bottom line: If you’re not diligent in updating your beneficiaries, your loved ones may be in for a big surprise in the event of your death. This is particularly important if you’re divorced. If your former spouse is still listed as the beneficiary for your IRA or life insurance policy, upon your death they will inherit those assets, not your current spouse, children, or other intended beneficiaries. What Can You Do? Any time there’s a major life event, make checking your beneficiaries a priority. Or, you can pick a date every year to review, such as your birthday. This helps ensure your beneficiaries match your wishes and you’re prepared in case of something unexpected. If you have questions or would like help with beneficiary planning,don’t hesitate to contact us! Or you can simply set up a time and date convenient for you by scheduling a meeting. |
Who will inherit your money?
