Update your beneficiaries of insurance policies and retirement

Update your beneficiaries of insurance policies and retirement -

As you gather your year-end documents for tax preparation, it is an important financial element should be included: check your insurance policies and other important records and financial plans to ensure that your designated beneficiaries are up to date. It is a good idea to review the beneficiaries each year because the life events may have changed your situation. Parents die, marriages dissolve, children are born, and one of these events may cause a change of beneficiary. Failure to periodically update your beneficiaries could have unintended consequences - you may not want a former spouse rather than your current spouse to be the recipient of your assets, but that could happen
Here some best practices for naming beneficiaries
always name a beneficiary . People who wills often think they have covered their beneficiaries, but this assumption may be wrong. Generally, the beneficiaries named in the pension and insurance policies will take precedence over any instructions that you leave in your will. Make sure you specified individuals as beneficiaries in your policies and plans. People often refer to as their "estate" as beneficiary, but this can lead to benefits to be attached to the probate court. Failure to designate a beneficiary can also mean that you miss plan or policy of certain benefits. For example, if you name an estate as beneficiary, an IRA will be liquidated on your death and taxes will be due. If your spouse is named as beneficiary, he or she may continue to benefit from tax-free growth.
Be specific . Avoid ambiguous language. Saying simply "my husband" or "my niece" may not be sufficient, especially in cases of multiple marriages. It is a good idea to use the names of beneficiaries to avoid confusion or potential conflicts.
name a secondary beneficiary . Make sure that it will be you and not your state law determines who will be the beneficiary of your policy benefits. If your primary beneficiary must pass away and you have not designated a secondary or contingent beneficiary, your insurance or pension policy will be distributed according to your will. If you have no will, the decision will default to the law of the state.
Keep important records in a safe place and tell a family member trust what and where they are . Many people suddenly die without leaving instructions as to where a will, insurance papers and other important documents are kept. Too often, the benefits go unclaimed because family members are unaware of the potential benefits or can not find important account information. Bank accounts and insurance policies are neglected. Make sure that someone in your family is familiar with your most important files and where they are kept
Further reading .?
Your day to beneficiaries
Update your beneficiaries
life insurance: Review your major policy for the future
Insurance beneficiaries of your family

Tweet