These simple forms determine who will receive your assets when you’re gone and keeping them current is one of the most important steps in helping protect your loved ones and ensuring your wishes are carried out.
A direct route outside your will
One of the biggest misconceptions about beneficiaries is that they’re automatically governed by your will. In reality, beneficiary designations on accounts such as IRAs, 401(k)s, life insurance policies, and annuities supersede what’s written in your will. That means even if your will names someone else, the institution holding your account will follow the beneficiary form on file.
That’s why it’s critical to make sure these designations reflect your current intentions, especially after major life events such as marriage, divorce, the birth of a child, or the passing of a loved one.
Avoiding unnecessary delays and costs
Another benefit of naming beneficiaries is efficiency. Assets with designated beneficiaries typically can transfer without going through probate, the often lengthy and costly court process that oversees the distribution of an estate. This not only can save time and money but also helps provide privacy, as probate proceedings are public records while beneficiary transfers are not.
Keeping plans in sync
Beneficiary planning isn’t just about checking a box, it’s about coordination. Your financial advisor at Voyage can help ensure your beneficiary designations align with your overall estate plan, trusts, and tax strategy. This integrated approach helps avoid conflicts, reduces taxes, and ensures assets go where you intend.
Review regularly, not just once
Life changes, and your beneficiary designations should, too. A good rule of thumb is to review them annually or whenever a significant life event occurs. Many clients are surprised to discover outdated or missing information, such as a deceased relative still listed as a primary beneficiary.
The bottom line
Designating and regularly reviewing your beneficiaries is one of the simplest yet most powerful ways to help protect your legacy. It can ensure your assets pass smoothly to the people and causes you care about most, exactly as you intend.
At Voyage Financial Group, we work with clients to make sure their wishes are accurately reflected for their accounts with us. We also help review your estate planning documents, and work to make sure updates are made where they are needed.
Consulting with one of our financial advisors can help you evaluate options around your plan for your legacy.
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For a financial plan tailored to your own specific financial situation and goals, reach out to our team at Voyage Financial Group. Schedule a complimentary initial consultation today!
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