Are Your Beneficiary Designations Correct and Complete?

Signing an estate plan can feel like the finish line. But even after the documents are signed, several important follow-up steps remain. Just as you start to thinking the chore is finally behind you, your attorney tells you the journey isn’t over yet.

There’s plenty left to do after signing an estate plan — confirm that assets are titled correctly, distribute copies of key documents, and store originals securely, to name a few tasks. This article focuses on one critical follow-up task: completing and properly submitting beneficiary designations with every financial institution that requires them.

Do I really have to? Emphatically, yes!

Upon your death, assets with a beneficiary designation on file will generally pass to the named beneficiaries, regardless of what your estate plan says. If no designation is on file, it can create complications. It’s essential to ensure your beneficiary designations are properly submitted and aligned with your wishes.

How do I know what assets need a beneficiary designation? Excellent question. Common types of assets that require a stand-alone beneficiary designation on file with the financial institution include retirement accounts, such as IRAs and 401(k)s, life insurance policies, annuities, and health savings accounts.

Who should I name as my beneficiaries? Most beneficiary designations allow you to name one or more individuals, trusts, or charities. Your estate‑planning lawyer can provide custom language for whom to name and how to word it so everything integrates smoothly with your estate plan. There may also be technical considerations and tax consequences tied to how you complete these forms, so don’t hesitate to review them with your attorney.

Remember, life happens. As things change, don’t forget about your beneficiary designations. You need to update all of them if your wishes shift. A marriage, divorce, death, birth, or simply the passage of time may also alter whom you want to name.

If you’re unsure whom you’ve listed, request copies of your beneficiary designations from your financial institutions and review them.

Need Help?

If you would like help reviewing or updating your beneficiary designations, or with other estate-planning matters, please contact Maureen O’Leary of O’Leary-Guth Law Office at moleary@olglawoffice.com

By Maureen O’Leary, J.D., president of O’Leary-Guth Law Office, S.C