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Finances in 55 Seconds: Check Beneficiary Designations
Posted By Miranda On 06/27/2011 @ 12:22 pm In Personal Finance | 3 Comments
When it comes to what you want done with your money after you’re gone, it’s important to consider an estate plan. Estate planning  is an essential part of making sure your money goes where you want it to. Proper estate planning can limit the amount of time your estate spends in probate — and reduce the fees and taxes that are paid on what you leave behind.
Estate planning sounds daunting, but it can be broken down into smaller pieces to make it more manageable. One of the easiest estate planning activities you can do is check your beneficiaries. Indeed, this can be done in under 55 seconds:
Now, of course, it is time to figure out how to change beneficiaries. A major life change, such as marriage or divorce, or the death of one of the beneficiaries, usually means that a change needs to be made. You should find out the process for making that change, and fill out the necessary paperwork. This is extremely important because who you have listed as a beneficiary trumps what is i your will in most cases. This means that if your will states that your current husband should get the assets in an account, but the beneficiary is still your ex, it’s your ex who will get the money. Make sure that you go through all of your accounts and update beneficiary information.
Realize that you might not be able to make changes on some accounts without closing the account and opening a new account. While you are about it, you should also double check the type of bank accounts you have. Some deposit accounts don’t allow for automatically passing your assets on to survivors. This means that when you die, it goes to probate to be considered as part of your estate. Find out from your bank what sort of restrictions can limit the way your account is passed to another person. You can then make the necessary arrangements to change matters, or open a different account.
You want to make sure that your money will be used according to your wishes — or at least passed on to your preferred heirs. In order to ensure that this happens, it is important that you check beneficiary information regularly to make sure that it is accurate and up to date.
(Photo: purplemattfish )
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