Do you love your beneficiaries enough to
take the time to check up on your beneficiary forms for your retirement
accounts?
You want to ensure the your
plans are carried out for your loved ones when you are no longer here, and your
will is the powerful tool you have for this very reason. But a will is rarely
and one-and-done deal – it should be updated regularly to reflect life changes
as they occur. You want to make sure your beneficiary designations and your
overall estate plan coincide so they work together instead of being in conflict.
Beneficiary forms seem simple
and they generally are. Just to be on the safe side, however, you may want to
read a recent article in The Slott Report
titled “Beneficiary Form Review: The Gift That Keeps
on Giving.”
Essentially, designating a
beneficiary or beneficiaries on a beneficiary form can allow you to exempt a
given account or policy entirely out of your “probate” estate. However, when
you avoid probate your will has no control over who inherits such account or
policy. Accordingly, by not reviewing and updating your beneficiary forms you
risk giving your assets to the wrong beneficiary (e.g., an ex-spouse on your
401k plan).
The take-a-way? Perform a
beneficiary form audit of your accounts to ensure they are consistent with your
wishes. Contact your estate planning attorney for assistance.
Reference: The Slott Report
(February 18, 2013) “Beneficiary Form Review: The Gift That Keeps
on Giving”
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