Estate Lawyers Cary NC | 5 Reasons to Update Your Beneficiaries
Did you know that banks and other financial institutions don’t automatically ask account holders to designate a beneficiary? As so, it can be easy to forget or postpone adding a beneficiary until it’s more convenient (or more often, too late). Your estate lawyers Cary want you to know that there are several reasons as to why you should name a beneficiary and why doing so makes the process of handling assets much smoother down the road. We'll discuss those reasons today.
Naming a beneficiary (the person, people or organization) that would receive the money in an account when you die, is a critical step to helping family members or heirs avoid any complications when you pass away. However, failing to update your beneficiaries, or neglecting to name them altogether, may leave life insurance and retirement accounts to unplanned heirs.
Failing to name a beneficiary can also create probate expenses and cause tax issues. While you may have a solid will in place, that doesn't always help avoid these issues. As such, the best safeguard is to contact estate lawyers Cary NC to assist you in designating and updating beneficiaries.
Probate is not needed for certain assets that have specific beneficiaries. When completing Beneficiary Designation forms, it’s important to name a person as the beneficiary. Contact an attorney prior to naming your estate the beneficiary of certain investments. Doing so may lead to probate and tax issues. Creating appropriate beneficiary designations and ensuring they are up-to-date can help decrease taxes and other costs for loved ones.
Common life events happen. These events might lead to reasons to contact your North Carolina estate planning attorney and update your beneficiaries. The list below suggests a few of those reasons:
- Marriage
- Divorce
- New baby
- Death of a relative
- Job change
Naming a second beneficiary might benefit you, as well. If you need to name or update your beneficiaries for life insurance policies or IRAs, feel free to contact Eldreth Law Firm, PLLC. We are estate lawyers Cary NC area. We will do what we can to help you get your beneficiaries and estate plan in place.
