Many estate planning tools can assist you in pass on your assets to your family, friends, and organizations after you pass away, from creating a will to managing a trust. Although creating a will is one of the best tools to describe how you would like your possessions and assets divided among your family and friends, a will in and of itself does not change title to anything. One necessary step in the process is filling out beneficiary designations, a step that is often missed during the estate planning process. The Law Office of Jason D. Berger will help you utilize beneficiary designations to your full advantage to avoid probate and distribute your assets in the way you desire.
What Is a Beneficiary Designation?
Beneficiary designations are people other than yourself listed to receive ownership, property, or funds for certain types of assets. Assets with a beneficiary designation will pass to the named beneficiary—even if a different person is listed in the will. Beneficiary designations take precedence over the will, so it is vital that beneficiaries are designated in the manner you desire.
Assets With Beneficiary Designation
Several types of assets allow for beneficiary designations. These assets may be jointly owned by someone else or protected in a trust. Once you pass away, these assets are transferred to the named beneficiary upon your death (also known as a “transfer on death” or “payable on death” assets). Types of assets with beneficiary designations include:
- Life insurance policies
- 401(k) plans
- Particular bank accounts or investment accounts
- Annuities
- IRAs
- Certificates of deposit
- Savings bonds
Benefits of Beneficiary Designations
Designating beneficiaries on relevant accounts allows those assets to avoid probate. The insurance company or financial institution will pass these assets to the named beneficiary upon your death. This saves a tremendous amount of time during the asset division and can avoid the probate process for that particular asset.
When Should I Update or Change a Beneficiary Designation?
It is ideal to review your beneficiary designations during the creation of your initial estate plan and any time you make updates to your estate planning documents. You should also review your beneficiary designations any time you or your family experience a life change, such as having a new baby or grandchild, changing marital status, or moving.
How to Designate Beneficiaries
When you work with an experienced estate planning attorney such as Jason D. Berger, we will perform a comprehensive review of your assets to determine which ones allow you to designate beneficiaries. We will review your estate planning documents to determine if your beneficiary designations coincide with what is stated in your will. If they are not the same person, you will need to contact the financial institution or insurance company directly and request to change or add a beneficiary to the account. You also may want to designate a contingent beneficiary if the primary beneficiary passes away.
Comprehensive Estate Planning From Jason D. Berger
Jason D. Berger is an estate planning attorney who can help you create a comprehensive estate plan that will ensure your beneficiary designations line up with the desires in your will. Call 772- 403-5880 to learn more.
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