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Around the Web – Beneficiary Designations that Can Cause Issues


There are many different issues to take into account while making your estate plan, specifically when it comes to beneficiary designations. This article by Forbes highlights seven of the most common issues that can really impact your plan if your beneficiaries were not carefully chosen. While it may seem like a simple task, but there are many factors that ultimately can undermine your intended plan. It is very important to go over your choices and your overall plan with a qualified estate planning attorney. Here are just a few of the possible issues you should look out for when making your estate plan.

  1. All about the cash – Make sure that you have enough money in your estate if you plan to give monetary gifts to people or various charities.
  2. Make sure to have your estate tax liability covered – if assets pass outside of your estate to a beneficiary, there should be enough money in your estate and trust to pay estate liability tax.
  3. Keep your tax savings protected – it is a good idea to make sure enough assets go into your trusts to maximize estate tax savings. If there aren’t enough assets in your trust, your beneficiaries may end up paying more in taxes.
  4. Double Check Everything – Make sure all information on the change of beneficiary form is correct and up to date.
  5. Choose wisely about naming your spouse as a beneficiary – This may defeat your estate planning.
  6. Think twice about making any last-minute changes – It could be wise to trust the choices that have already been made with much thought and consideration.
  7. Be Wary of Qualified Accounts – Always consult your attorney before naming a trust as a beneficiary of a qualified account such as an IRA.

If you want to revisit your estate plan and beneficiaries, contact us today. We can work with you to help make the best decisions for your specific plan.

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