Do you have a bank account? What about a brokerage account or life insurance policy? Have you set up an annuity or a retirement plan?
You probably have a least one or two of these types of accounts. When you set them up, you were asked to name a beneficiary for each. At the time, the person you named was someone you wanted to receive these assets when you died. It might have been a spouse or significant other.
It’s been several years since you named that person. Have your circumstances changed? Are you now divorced or no longer involved with him or her? Have you remarried or had children you want to be sure are protected?
Most people name a beneficiary and then forget about it. They never go back and update the information provided so it reflects their current wishes. They figure it doesn’t matter because they have a current will that designates who should inherit what. However, it does matter. Whoever is named as a beneficiary receives that asset when you die, regardless of what it says in your will. So your ex-husband or former girlfriend may receive a large sum of money that you didn’t want them to have.
Don’t let this happen. Review your beneficiary designations whenever your circumstances change and be sure that your assets will go where you want them to when you die.
For more information about estate planning, go to our website www.diesmart.com.