Most people set up beneficiary designations on a life insurance policy, annuity, or retirement account once it is first established and then forget about it. However, these designations are hardly a good time to "set it and forget it". Like a good estate plan, it is necessary to review beneficiary designations every few years as a check-up.
One thing people may not realize is that a beneficiary designation will bypass what a Last Will & Testament says for that specific asset. If your Will lists one beneficiary but your beneficiary designation is set up to pay to someone else, the designated beneficiary will receive the proceeds from that specific account, regardless of what your Will says.
There are many life events that require someone to review and update their beneficiary designations. Some of the most common are:
- Birth of a child
- Death of a child
- Death of a spouse
- Changes in your inheritance wishes
- Creation or update of your own estate plan
There have been countless stories of people who name their spouse as a beneficiary. Years later, they get divorced and remarried to a new spouse, but don't remember to update their beneficiary designations. When that person dies, the OLD spouse receives the death benefit instead of the NEW spouse!
If you have experienced one of the life events listed above, or if you would like to review your beneficiary designations and your own estate plan, please call The Rosenbauer Law Office, LLC at 513-463-6789 to schedule a complimentary consultation today!