Update Beneficiary Designations NOW!

Sometimes beneficiary designations get overlooked during the estate planning process or as life unfolds somewhat chaotically.  Just like the rest of estate planning, beneficiary designations are not a “once and done.”  It is imperative that you ensure your beneficiary designations are in line with your current intent and estate planning documents.

Be sure to review and update beneficiary designations, as needed, every three to five years or upon the occurrence of a significant life event.  Examples of significant life events include:

• Marriage, remarriage, or new partner
• Divorce or separation
• New children or step-children
• Attainment or loss of significant assets
• Whenever you update your estate plan

Typical beneficiary designation assets:

• Annuities
• Life insurance
• IRAs
• 401ks

Stay organized:

• Keep proof of beneficiary designation in labeled file with your estate planning documents
• Give a copy of beneficiary designation proof to your estate planning attorney
• Keep confirmation of any changes from financial institution because sometimes they goof up and do not have accurate records

Important note about retirement plans:

• If you wish to name a beneficiary other than your spouse, your spouse must sign in consent
• If you make the change without spousal consent, the spouse will be deemed the beneficiary
• If you get married after you have designated a beneficiary, you have one year from the date of your marriage to get spousal consent or the spouse will be deemed the beneficiary

Consult with qualified estate planning counsel:

• Ensure that your beneficiary designations represent your current goals and intent
• Ensure that your beneficiary designations work with your over all estate plan

You may want to name a trust for your spouse (or other beneficiary) rather than your spouse outright for many estate planning reasons.