Tips for choosing beneficiaries

Choosing beneficiaries for life insurance policies, retirement accounts, pensions, and other assets is an important part of estate planning. These designations determine who will receive significant sums of money after you pass away — sometimes outside of your will — so it’s essential to make thoughtful choices.

Here are a few factors to consider when deciding who should be your beneficiaries:

• Choose someone you trustSelect a person you trust completely to receive and manage the money responsibly. This may be a spouse, child, close relative, or even a trusted friend.

• Always name an alternate beneficiaryIn case something happens to your primary beneficiary before they receive the funds, name a contingent (alternate) beneficiary. This ensures the money goes where you want it to, without delay or confusion.

• Keep your designations up to dateLife changes — such as death, divorce, estrangement, marriage, or the birth of a child — may require updates to your beneficiary choices. Review your designations regularly to ensure they still reflect your wishes.

Remember, beneficiary designations on accounts like life insurance and retirement plans override what’s written in your will. That means if your will says one thing, but your account designations say another, the account designations will usually control.

Making careful, informed choices about beneficiaries helps protect your legacy and ensures your loved ones are provided for according to your intentions.

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Make sure your beneficiaries match your wishes

Beneficiary designations can override your will, so it’s important to review and update them regularly. At Prudent Planning Legal, we’ll help you choose beneficiaries that reflect your wishes and keep your estate plan consistent across all accounts and policies.

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