Daily Archives January 12, 2012

Making sure your estate plan is current is critical to your retirement planning. Like all plans your estate needs periodic review to make sure it is in-line with your wishes, one are commonly overlooked is beneficiary designations.
The beneficiaries you named several years ago may not be the same you are considering now the addition of a new, child or grandchild or a change in your marital status could be reasons for updating your plan.
Couples who have remarried and have had children through previous relationships might have separate plans for their assets to transfer for example; benefitting their spouse until their death with the remainder going to their children. It is important these instructions be spelled out in you estate documents if not your assets may not be distributed according to your wishes.
Not only is it important to review your will or trust documents but you need to update your often overlooked retirement plans, life insurance, and any account that names a beneficiary or joint owner. These transfers are considered will substitutes and will pass directly to the named beneficiary even if they do not align with other documents. It is not unusual for people to own several insurance policies purchased over a span of years, or several An ignored beneficiary designation could provide a former (and unintended former spouse) with a benefit and bypass your true intention.
It is a good idea to keep an additional copy of the beneficiary designation form with your estate documents as well as the one held by the custodian, trustee or insurance company.