Beneficiaries are an important part of estate planning. Below, you'll find information from our estate lawyers in Cary NC regarding their importance.
Things to Consider For Beneficiaries | Estate Lawyers Cary NC
- Failing to update your beneficiaries, or neglecting to name them altogether, may leave life insurance and retirement accounts to unplanned heirs. It can also create probate expenses and cause tax issues. You may have a solid will in place, but sometimes that will not help avoid these issues. The best safeguard is to contact an estate attorney to assist you in designating and updating beneficiaries.
- If a major life change occurs such as a marriage, divorce, birth, or death, then who you designate as your beneficiary may need to be changed. If you get a divorce and do not change your beneficiary from your former spouse, he or she will collect on your policy or account. Even if you have updated your estate plan and will to reflect changes, the person named in the actual policy or on the account overrides what is in your will. Many people review their estate plan and policies once a year in order to ensure that everything is up to date.
- If you are considering naming your estate the beneficiary for a policy or account, consider that it may have to go through probate court before it is distributed. There may also be tax consequences that can decrease the payout. Consult with estate lawyers in Cary NC before making that type of designation.
- If you are designating different accounts for multiple heirs, such as adult children, keep in mind what type of accounts you are distributing. They may increase in value unevenly, making the amounts the children receive differently. This can cause hurt feelings and confusion later on if they do not understand why they may have received less than a sibling. When naming a beneficiary, check with your attorney before designating minors, such as your children, because you may be better served to create a trust.
To learn more, visit back with our next blog post. There, our estate lawyers in Cary NC will share more information.
Eldreth Law Firm | Estate Lawyers Cary NC
Remember, estate planning is important. It’s a way to ensure your loved ones are cared for after you’ve passed. It’s also a way to distribute your belongings to specific loved ones as well. It’s important that one not pass without this document. Doing so can result in a court case that will leave your loved ones stuck in probate court. This could be not only time consuming but expensive as well.
Regardless of whether you're married, single, wealthy, childless or a parent, it's important for all adults to have an estate plan and the proper documents in place at the beginning of each year. If you're ready to begin planning your estate contact our estate lawyer in Cary NC, today.