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beneficiary

What to Do When a Primary Beneficiary Passes Away 

A detailed and thorough estate plan is essential in protecting your loved ones and ensuring their peace of mind after your passing. Estate plans, among other advantages, can provide your loved ones with financial assets, which can help them navigate life after you are no longer around. When you create an estate plan, the assumption is that the people you appoint as beneficiaries will outlive you. Unfortunately, tragic unforeseen events can happen, and your beneficiaries may not survive you. When it comes to considering what will happen in this situation, one of the most common questions that people ask is who will inherit the asset if the beneficiary is no longer alive.  The Role of Beneficiary The term ‘beneficiary’ refers to anyone whom the creator of an estate plan has appointed in their estate plan who will receive an inheritance from the creator following the creator’s death. Beneficiaries play a critical role in estate plans and many types of estate plans are not considered valid unless a beneficiary is appointed. While some people think beneficiaries are only people, they can also include organizations and other entities.  Not all beneficiaries are the same. Primary beneficiaries refer to individuals who have the [...]

2021-11-19T01:31:43+00:00Tags: , |

Think Twice About Adding a Beneficiary to Your Deed

One of the critical reasons to engage in estate planning is that the upfront costs to establish the proper estate planning strategies often cost much less than the trouble that can arise if a person does not create a proper plan. One of the most costly types of estate planning errors involves the methods that a person utilizes to convey property to loved ones following death or incapacity.    A unique challenge presented by many individuals currently engaged in the estate planning process is that they have been in their “home” or property for many years, during which time the worth of the estate has increased substantially. Consequently, a transfer of the property creates long term gain complications, which means that listing a beneficiary on a property deed is often not the best type of estate planning strategy.    The Challenge Presented by Listing Beneficiaries   Most people list beneficiaries on various estate planning documents including life insurance policies, retirement accounts, and trusts. Consequently, these individuals often make the mistake of thinking that it will present little harm to name a beneficiary on a deed. Even if a person is aware of the risk presented by transferring property in this [...]

2020-06-23T15:53:33+00:00Tags: , , , |