All adults should have an estate plan, but creating it isn’t as easy as some may believe. Many people assume that their Will is enough to distribute their assets. It’s critical to ensure that all aspects of your estate are set up properly so your wishes can be followed when you pass. There are many types of assets, such as life insurance, jointly held accounts, and payable on death accounts, which will pass to beneficiaries outside of even a properly executed Will.
One thing that you have to do is to name beneficiaries in the proper manner. These are the individuals you name on financial accounts and other assets. You can’t set the designations and forget them. Instead, you have to review and update them as necessary.
When should you check and update the beneficiary designations?
The same events that trigger an estate plan review will trigger the need to check beneficiaries. It can be difficult to remember which accounts have which specific beneficiaries. Making a list of these may be beneficial to make it easier to review and update the information.
For accounts that have a payable on death designation, it’s important not to name those in the actual estate plan. They will be distributed according to the designation, which means that they don’t have to be included anywhere else. But keep in mind that this means some beneficiary will be receiving assets which are not passing through the Will, possibly resulting in unintended and uneven distributions.
A comprehensive estate plan will ensure that your wishes are followed when you aren’t here to give the instructions yourself. Having all of the beneficiary designations up to date can make this easier.
It may be beneficial to work with someone who knows your wishes and can help you to find ways to relay those wishes in a legally enforceable manner. Getting this together as soon as possible can help you to rest a little easier since you’ll know you have it taken care of. Contact an experienced estate planning attorney today to seek professional assistance with the plan. The goal is to help you achieve peace of mind.