Six Estate Planning Mistakes to Avoid

One important facet of estate planning is beneficiary designations. These designations are common on documents such as insurance policies and retirement plans. Although it may seem simple to put a name on a designation and forget about it, this can often lead to adverse consequences. A recent article discusses six things that can go wrong with beneficiary designation forms, and how to avoid them.

  1. Failing to Name a Beneficiary: Review all of your assets with beneficiary designations periodically to ensure that a beneficiary is named for each.
  2. Failing to Name a Contingent Beneficiary: For each beneficiary, name at least one contingent beneficiary in the event that the primary beneficiary predeceases you or disclaims the amount.
  3. Failing to Put Specifics in Beneficiary Designations: Be as specific as possible, for example, do not simply write “my children,” rather, use their names to avoid confusion that may occur with adopted or step-children.
  4. Failing to Keep Designations Up to Date: Importantly, review your beneficiary designations once every few years, and after major life events such as a marriage or divorce.
  5. Failing to Keep Beneficiary Designation Forms on File: Always ask for a copy of any beneficiary designation form so you can keep it with your records.
  6. Failing to Consider the Financial or Emotional Readiness of Beneficiaries: If you would like to name a young adult on a beneficiary designation form, consider whether it is wise to give them that amount of money with no strings attached.

Share this post

Schedule Your Free Right Fit Meeting Today.