How important is it to have beneficiary designations on certain types of assets?
Certain types of assets should have specific beneficiary designations. A beneficiary designation means naming the person or persons who will receive that specific asset on the death of the owner. In addition to naming a first beneficiary, it is also a good idea to name a second, or contingent, beneficiary in the event that the first beneficiary passes away first. Sometimes, a named beneficiary may be a trust for minor children or children with disabilities. It is important to properly name the beneficiaries so that the right person or persons receive the asset on the owner’s death. The types of assets that usually have beneficiary designations include life insurance policies, annuities and IRA accounts, 401K accounts, or other types of retirement accounts. Savings bonds may state “Payable on Death” or “POD”, which is similar to naming a beneficiary. It is most helpful to review beneficiary designations with an attorney knowledgeable in the area of estate planning to make sure that the
Certain types of assets should have specific beneficiary designations. A beneficiary designation means naming the person or persons who will receive that specific asset on the death of the owner. In addition to naming a first beneficiary, it is also a good idea to name a second, or contingent, beneficiary in the event that the first beneficiary passes away first. Sometimes, a named beneficiary may be a trust for minor children or children with disabilities. It is important to properly name the beneficiaries so that the right person or persons receive the asset on the owner’s death. The types of assets that usually have beneficiary designations include life insurance policies, annuities and IRA accounts, 401K accounts, or other types of retirement accounts. Savings bonds may state “Payable on Death” or “POD”, which is similar to naming a beneficiary. It is most helpful to review beneficiary designations with an Elder Law attorney knowledgeable in the area of estate planning to make sure
