Broker Check

Designating a Beneficiary

| May 15, 2019
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Have you checked your beneficiary designations lately? It’s extremely important to keep the names of the person(s) you’d like to benefit from your insurance policies, pension plans, individual retirement plans, annuities and other investments up-to-date. We discuss this annually with our clients and have them work with their estate planner or our estate planning colleagues to make sure everything is in order. The events in your life are constantly changing, and your beneficiary designations may periodically need to be reviewed. Here are a few reasons why checking your beneficiary designations regularly is so important:

 

  • A beneficiary designation trumps a will. For example, if your children are named in your will, but your ex-spouse is still listed on your pension plan, your ex-spouse is entitled to that money.

 

  • If you don't name beneficiaries for your assets, they may be subject to probate. This can be an expensive and lengthy process and may not result in your original intentions.

 

  • Naming contingent beneficiaries is just as important as naming primary beneficiaries. In the event a primary beneficiary passes away before you, you have made sure your assets will go to the recipient(s) you want. Some experts suggest naming two contingent beneficiaries for each primary one, just to be safe.

 

I specialize in retirement planning issues. In working with many clients who have been referred to me over the years, I have seen what can happen when beneficiary designations have not been updated. I oversee many retirement and investment accounts and work with my clients to help them accomplish their financial goals and objectives.

 

I would welcome the opportunity to meet with you. Call me today at 952-767-3494

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