Mike continues his discussion of setting up beneficiaries on your various accounts.
- Remember that beneficiary designations will take priority over anything named in your will.
- Don’t unknowingly disinherit your grandkids: a helpful tool for this is using per stirpes language.
- Is there a danger to naming only one child as the beneficiary and trusting them to distribute to the other heirs according to your desires?
- How can you make sure your IRA assets get paid out over time instead of one lump sum?
- Life Events such as birth of a new child, death of a loved one, divorce, marriage should act as triggers for you to double check your beneficiaries. What is the difference between Tenants in Common and Joint Tenants With Right of Survivorship (JWROS) on a real estate deed?
- When was the last time you double checked your deed to see how it is titled?
- What about having JWROS on a bank account or a brokerage account?
- Is it a good idea to have a joint account with an elderly parent and their child who helps them with day to day responsibilities?
- What about your child’s spouse (your in-laws) and your grandchildren? Have you drafted your documents to make sure they get the assets as you intend?
- What about 2nd marriages and kids from previous marriages? There are times when a trust would be the most appropriate. Have you considered that route?
- What about minor children?
- There are certain people you shouldn’t name as beneficiaries: who are they?
- Did you know you can name your church or favorite charity as a beneficiary? There are special considerations for this, too.