3 Reasons to Update Your Beneficiaries Now

Financial tips

3 Reasons to Update Your Beneficiaries Now

Posted by Infinite Wealth Advisors, LLC
1 year ago | April 17, 2023

We don’t usually like to think about it, but our assets must go somewhere after we pass away. Setting up a Will is important, but is actually not the most direct way to transfer assets to your intended heirs. Your beneficiary forms, which you fill out when you establish a financial account, are intended for this purpose.

But if you established accounts long ago, and haven’t updated them recently, your assets might not pass to the correct individuals. Or if you haven’t yet filled out a beneficiary form, you can’t be sure of exactly what will happen. Here are three reasons to check on your beneficiary designations now, and update them if necessary.

Avoid probate court. If you pass away without naming beneficiaries, or if your beneficiaries die before you, your assets will be subject to the probate court process. A judge will determine who inherits your money, according to the laws of your state. And because the probate court process can last months or even years, your heirs will experience a frustrating and inconvenient delay.

Your wishes can change. It’s possible that your wishes have changed since you filled out beneficiary forms years ago. A divorce can mean that you no longer wish for your former spouse to inherit your assets, or a beneficiary can die or become incapacitated. The addition of new family members might also cause you to shift your views on inheritance.

Special situations can occur. Maybe you would rather leave your assets to a charity, or you need to provide for a child or disabled adult. In special situations, take your beneficiary forms to an estate planning attorney who can guide you on the next steps you should take.

And of course, we should discuss the status of your assets at our next meeting. We can help you protect them and ensure that the right person benefits from your sound financial planning.

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