In our culture, which is focused on young people, we often don't take care of basic paperwork like naming who will get our estate when we die. This is a sad fact. People don't often realise that even basic things like pensions and pension plans were rarely talked about or looked into until judgement day, or whatever you want to call it. America was a place where everyone was young and always on the go. Only now, when a lot of baby boomers are getting ready to retire, are things like retirement plans, planning for retirement, and selling off an estate topics that people talk about and care about.
You have to remember that your main goal is to take care of and make life easier for the people you care about. If you don't take steps to name the people or groups you want to help after you die as the beneficiaries of your estate, you may cause them or them extra problems, stress, and even hardship. Do something.
The goal of naming a beneficiary is to make sure that when a person dies, their assets are transferred quickly, completely, and efficiently. Be specific. If you want to give money or property to a certain person, relative, institution, or organisation after you die, you should name that person or group as your beneficiary. If you don't give a specific name, processing that claim could take longer than it needs to, which could make things hard for the people you were trying to help. If there is land, real estate, or stocks to split, the percentages show how they should be split. If you name more than one person as a beneficiary, you need to say how much each person will get. For instance, Aidun Smith got 50%, Shooter Labby got 45%, and Greg Jones got 5%.
Your lawyer, barrister, or attorney is the best person to talk to about making sure that your will and the people you want to benefit from it work together and are coordinated. For example, if a will divides an estate between two children, but only one child is named as the beneficiary of the life insurance policy, did the parents mean for the other child to get half of the estate plus the money from the life insurance, or should an adjustment be made?
Think about naming a backup beneficiary in case the main one dies before you do.
If you name a minor child as a beneficiary, make sure your will includes a way to name a trustee for the child. When a proper trust document is set up, the trustee will take care of the money and give it out according to your wishes.
If not, a public official might be put in charge of your money and estate, which you worked hard to build up over your life, until the child turns 18. At that point, the remaining money will be given to the child, who is now a legal adult.
Most of the time, if a beneficiary other than the "estate" is named, the assets from a registered account, segregated funds, or the death benefits of life insurance policies can be given to that person or organisation instead of the "estate." This can help avoid administrative fees and some taxes and costs. The answer to the question of whether or not to pay probate fees depends on the laws of the state where you live.
But keep in mind that choosing a beneficiary is not a one-time thing. From time to time and over time, it can change. When you get married or divorced, a child is born, or a loved one dies, you should review your situation and designations. For instance, if you are married, you probably have your spouse listed as the beneficiary of your plans. If you get a divorce, the people who will get your money may change, but only if you make sure of it. Changes don't just take place on their own.
In the end, everything comes down to thinking ahead and making plans. If you don't plan, you're being careless and putting your closest friends and family through extra stress and trouble. Do something.
