With the sometimes hectic pace of life, you probably aren’t thinking about the beneficiary designations on your 401(k), IRAs, or life insurance policies. But perhaps you should.
Having the wrong beneficiary designated on these and other things like bank accounts, annuities, and 529 college savings plans is probably one of the biggest estate planning goofs people make. This is because most of us name those beneficiaries when we initiate a plan or open an account and then forget about them.
However, life changes and this is why you need to review and update your beneficiary designations at least once a year. For example, here are six scenarios that could cause a change in beneficiary designation:
● You got married, divorced, or remarried
● You changed jobs and moved your retirement account
● One of your beneficiaries died
● The birth of a child or grandchild
● You moved your account to another financial institution
● One of your beneficiaries became disabled
Not having the correct beneficiary designated (or designating a minor) can wreak havoc on your family when something happens to you as well as create tax issues for your heirs. You could unintentionally disinherit the very people you care the most about and potentially tie up your estate in probate or, worse, litigation.
Make it a point to review your beneficiary designations and update if necessary.
This article is a service of the Law Office of Keoni Souza, LLC, an estate planning law firm in Honolulu, Hawaii. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That is why we offer a strategic planning session, during which you will get more financially organized than you have ever been before and make all the best choices for the people you love. You can begin by contacting our office today to schedule a planning session and mention this article to find out how to get this $750 session at no charge.
Disclaimer: All information on this website is for informational purposes only and is not legal advice. You should contact an attorney trained to work with families on estate planning matters regarding your specific situation. Use of and access to this website or any of the email links contained within the site do not create an attorney-client relationship between the Law Office of Keoni Souza, LLC, and any users or any other party.
