Review Your Beneficiary
Designations
Having a will is certainly important, but did you know that your will only determines where a portion of your assets would go if you were to die?
It’s true – many assets have a “beneficiary designation,” which means that
the financial institution’s records determine where the money goes. This is
true of life insurance policies, annuities, IRAs, money in a 401(k) plan,
accounts with a payable-on-death designation, and any jointly-owned accounts,
just to name a few.
Chances
are when you first opened any of
these, you filled out a form that designated the beneficiaries. But, chances
are a lot has changed in your life since then. Have you had more children? Have
you divorced or married? Sadly, many people have died unexpectedly with former
spouses listed as beneficiaries, and there is nothing the current spouse can do
about it once you’re gone.
Alternatively, you may have filled out “none” or “my estate” as the beneficiary,
and that can be a mistake. For example, life insurance benefits paid to your
estate can be subject to the delays and expenses associated with the probate
process and must be used to pay debts of the estate before the money can pass
through to your heirs.
Common mistakes:
• No
beneficiaries are listed
•
Your estate is listed as the beneficiary
•
Children born after the account was opened are not listed
•
Former spouse is still listed
If a life
insurance policy has designated beneficiaries, then in most cases, payment is
quickly made to those beneficiaries regardless of your estate’s debts.
So, it makes sense to contact all of your
financial providers and make sure your beneficiary designations are up-to-date.
CornerStone Financial
Whether your
nest-egg is worth millions or thousands,
You and your
family deserve it more than the government....
We are here to help you with all of your
financial and insurance needs. Our skilled professionals are licensed with
over 100 top name companies and can help you gain a better understanding of the
concepts behind insurance including investing, retirement and estate
planning. There are literally thousands of products to choose from,
but we can help pinpoint what is best for you and your situation. Please
do not hesitate to contact us if you have questions.
Contact:
Eric Tuttobene
President/CEO
CornerStone
Financial
(615) 427-8780
IMPORTANT DISCLOSURES
The
information presented here is not specific to any individual's personal
circumstances.
To the extent
that this material concerns tax matters, it is not intended or written to be
used, and cannot be used, by a taxpayer for the purpose of avoiding penalties
that may be imposed by law. Each taxpayer should seek independent advice from a
tax professional based on his or her individual circumstances.
These
materials are provided for general information and educational purposes based
upon publicly available information from sources believed to be reliable—we
cannot assure the accuracy or completeness of these materials. The information
in these materials may change at any time and without notice.
