Do you have any life insurance policies, retirement plans (from a current or former employer), or an Individual Retirement Accounts (IRA)? If so, when was the last time you checked the beneficiary designations for those policies or accounts? Odds are, it’s been awhile. What you may not know is that these types of assets do not pass according to your will. Rather, you designate who will receive these assets by naming one or more beneficiaries on a beneficiary designation form. Because the beneficiaries you designate for these assets can have drastic effects on your Houston estate plan, there are some things you need to consider when completing these forms for the first time as well as when you update them. A recent article in Morningstar, titled “How to Handle Beneficiary Designations”, provides some pointers on what you need to consider, such as:
For more information, see this prior blog post regarding the importance of updating your beneficiary designations.
Reference: Morningstar (October 10, 2014) “How to Handle Beneficiary Designations“