Are beneficiary designations a good probate avoidance approach?
Generally, yes. There are at least two difficulties with using the beneficiary designation approach, and they may not be important in your individual situation: • It can be difficult to get each asset set up properly, and to maintain control and awareness. Similarly, it can be difficult to make any changes. Suppose, for example, that you decide that one of your intended beneficiaries no longer needs a share of your estate (for whatever reason). You will have to change the beneficiary on each insurance account, bank account, stock holding and real estate. Plus you will have to remember to add the list of beneficiaries to each new account you set up for the rest of your life. • Beneficiary designations may not deal very well with the possibility that a beneficiary dies before you. Your life insurance policy might provide, for example, that a deceased beneficiary’s share goes to his or her estate, while the bank account goes to only the surviving named beneficiaries and the brokerage acco
Related Questions
- I have heard that a Living (inter vivos) Trust is a good way to avoid the costs of probate and inheritance taxes. Is it a good idea?
- Why does an heir or beneficiary need to establish good title to the deceased persons assets through probate?
- Are there some applications for which the commodity-based clusters of microprocessors are a good approach?
