Beneficiary designations are easy to overlook, but they play an important role in how assets are passed on to loved ones. Over time, marriages, divorces, births, deaths, and changing financial goals can all affect whether beneficiary choices still reflect a person’s intentions.
Many people assume their will controls everything, but certain accounts, such as retirement plans and life insurance policies, typically pass directly through beneficiary designations instead.
That is why reviewing beneficiaries regularly can be an important part of an overall estate plan.
Some key considerations may include:
- Whether beneficiary designations are current and aligned with estate planning documents
- How different account types may receive different tax treatment
- The implications of naming trusts, charities, or an estate as beneficiaries
- Whether assets are being distributed as intended among family members and loved ones
Even small oversights can create unintended outcomes if beneficiary elections have not been updated in years.
Download Our Beneficiary Review Checklist
To help simplify the review process, we offer the “What Issues Should I Consider When Reviewing My Beneficiaries?” checklist.
It highlights important considerations related to beneficiary designations, tax treatment, estate planning coordination, and non-person beneficiaries.
Whether you recently experienced a life change or simply have not reviewed your accounts in a while, this checklist can help identify areas worth revisiting.
Would you like to discuss how Allos can help you? Let’s Chat: https://bit.ly/4d0svJT
Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this content, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for you or your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Allos Investment Advisors®, LLC.
The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.
Jessica Searcy Kmetty, AIFA®, ChSNC®, CDS®, CPFA®, GFS®, C(k)P®, PPC™, is Principal at Allos Investment Advisors. With more than two decades of experience in financial planning, she works with divorced women, female entrepreneurs, blended families, and families with special needs children. Jessica brings personal perspective and specialized training in divorce, special needs, fiduciary, and retirement plan services to her planning conversations.
