When you open a retirement account or buy life insurance, you are asked to name a beneficiary. It may feel like routine paperwork, but this choice can shape your family’s future in powerful ways.
Many people forget about their beneficiary forms after they sign them, but these instructions can override your will. If they are outdated, your money could go to someone you didn’t intend, creating what experts call an accidental inheritance.
When life changes — through marriage, divorce, children or the loss of a loved one — it’s a good time to review your choices.
You’ll also want to be cautious about naming minors as beneficiaries because the court would need to get involved.
And for family members with special needs, improperly naming a beneficiary could jeopardize that person’s eligibility to receive government benefits.
Take time today to add beneficiary designations if you haven’t already, or to confirm that your beneficiary designations still reflect your wishes.
