[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/when-selecting-beneficiaries-gets-overlooked-white-plains-ny-new-york-ny\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/when-selecting-beneficiaries-gets-overlooked-white-plains-ny-new-york-ny\/","headline":"When Selecting Beneficiaries Gets Overlooked","name":"When Selecting Beneficiaries Gets Overlooked","description":"\u201cIf you\u2019ve ever spent time working through your estate plan with a professional, you know how important it is to select and update your beneficiaries. Failing to do so can result in costly mistakes\u2014for you and your loved ones.\u201d Here\u2019s one way to mess up your estate plan: naming beneficiaries not by name, but by […]","datePublished":"2019-10-29","dateModified":"2023-09-21","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a4bf091d.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a4bf091d.jpg","height":600,"width":900},"url":"https:\/\/www.amorusolaw.com\/blog\/when-selecting-beneficiaries-gets-overlooked-white-plains-ny-new-york-ny\/","about":["Estate Planning","Heir","Probate","Will"],"wordCount":530,"keywords":["Beneficiary Designations","Estate Planning","Heir","Probate","Will"],"articleBody":"\u201cIf you\u2019ve ever spent time working through your estate plan with a professional, you know how important it is to select and update your beneficiaries. Failing to do so can result in costly mistakes\u2014for you and your loved ones.\u201dHere\u2019s one way to mess up your estate plan: naming beneficiaries not by name, but by the generic term \u201cchildren.\u201d If yours is a blended family, your stepchildren may be out of luck, according to the article “Five mistakes to avoid when naming beneficiaries” from Delco Times. In many states, stepchildren aren\u2019t recognized if the word \u201cchildren\u201d is used. Use your beneficiaries\u2019 full names.Here are more mistakes that people make about beneficiaries:Failing to name a beneficiary on every account. The great thing about beneficiary designations as that they do not go through probate and beneficiaries receive assets directly from the custodian of the account. However, if you fail to name a beneficiary, the asset, whether life insurance proceeds or the entire balance of a 401(k) account will go to your estate, and then it will need to go through probate.\u00a0 For retirement accounts, your heirs will also lose the ability to stretch withdrawals over their lifetime.Failing to name a contingency beneficiary. What if the first person passes away before you and there\u2019s no contingency beneficiary named? The asset goes through probate, as if there were no beneficiary named at all.\u00a0 If both people die at the same time, all of the funds must go through probate.Neglecting to review beneficiary selections on a regular basis. Beneficiary designations override a will, so it\u2019s very important to keep them current. Every few years, review the accounts that you own and see what your beneficiary designation choices are. This is especially necessary, if you have been divorced, widowed or remarried. If you fail to take your ex-spouse off an insurance policy, for instance, there\u2019s little that can be done when you die\u2014even if you put your wishes that a new spouse or children receive the proceeds in your will. If the dispute goes to court, your new spouse or children won\u2019t be likely to win, no matter what your intentions may have been.Not communicating with your partner and family members. Talking with family members and loved ones about your wishes for your legacy and asset distribution is an important way to let them know what to expect when you die. It\u2019s not an easy conversation, but it will be helpful to all. Knowing you have a plan will alleviate them from the worry of the unknown. There\u2019s no need to talk specific dollar amounts, unless you want to. Instead, give them a high-level overview of what your intentions are.Some families find these conversations easier in the presence of an objective third party, like your estate planning attorney. If your estate plan includes trusts or any complex planning strategies, a family meeting provides a means of explaining the plan and the processes involved.Reference: Delco Times (October 6, 2019) “Five mistakes to avoid when naming beneficiaries”For more information on asset preservation and estate planning, please visit my estate planning website."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"When Selecting Beneficiaries Gets Overlooked","item":"https:\/\/www.amorusolaw.com\/blog\/when-selecting-beneficiaries-gets-overlooked-white-plains-ny-new-york-ny\/#breadcrumbitem"}]}]