When it comes to estate planning, one item that can often be forgotten or overlooked but can also be easily remedied is updating your beneficiary designations. Taking an hour of your time now to look these over can ensure you have a say in what happens to these funds when you’re gone.
A beneficiary – which can be either a person, entity, or charity – is named to make the transfer of money quick, easy, and clear. While people often choose their spouse, child, or another family member to be the beneficiary, you can also choose a trustee of a trust, an estate, or a charity.
The most common accounts that allow you to name a beneficiary to inherit the account value upon your death are: