5 Beneficiary Considerations

The word ‘beneficiary’ covers more than just wills and estates.  Below are five key considerations to look for when naming a beneficiary. 

1. A beneficiary of a traditional will must wait until the will goes into probate before receiving any money or property.  “That’s why many choose to create a Revocable Living Trust as an estate plan.”
2.  Beneficiaries of life insurance policies or retirement plans get the assets directly; thus, bypassing the probate process entirely. 
3. Naming a minor child as a beneficiary of a life insurance policy is not a smart decision; it is better to set up a trust for the child. 
4. Be careful when naming a beneficiary because “[n]aming the “correct” person could allow your IRA to continue growing tax-deferred over many years.” 
5. Consider the consequences of who you name as a beneficiary.  

See Terry Savage, 5 Key Considerations When Naming Beneficiaries, Chicago Tribune, April 5, 2015.