A carefully drafted estate plan can still produce unintended results when beneficiary designations on retirement accounts or insurance policies no longer match the family’s intentions.
Know which assets use beneficiary forms
Retirement accounts, life insurance and certain other accounts may transfer according to beneficiary elections rather than instructions in a will. Rules vary by asset and circumstances.
Check primary and contingent beneficiaries
A contingent beneficiary can matter if a primary beneficiary dies first or cannot receive the asset. Review names, percentages and the plan for each beneficiary.
Be careful with trusts and minors
Naming a trust or minor can involve legal, tax and administrative consequences. An estate-planning attorney should advise on appropriate beneficiary structure.
Coordinate after major life events
Marriage, divorce, birth, death and changes in family relationships are natural times to review elections. Employer plan rules and state law can also affect outcomes.
Keep records of the review
Retain confirmation of accepted beneficiary elections and periodically verify that account records reflect your instructions.
This material is provided for general educational and informational purposes only and is not intended as individualized investment, tax or legal advice or as a recommendation of any specific investment, strategy or course of action. The considerations discussed may not apply to every investor, and strategies may involve risks, costs, taxes and other limitations. Investing involves risk, including possible loss of principal. Tax and estate-planning matters should be reviewed with qualified tax and legal professionals. White Aspen Capital does not provide legal advice. Information is based on sources believed reliable, but accuracy and completeness are not guaranteed. Rules and individual circumstances can change.