Wednesday, December 30, 2015
There are many important things that people need to consider when addressing beneficiaries in estate planning. One important issue in estate planning involves who to name as a beneficiary on “life insurance policies, pension plan accounts, and IRAs.” When naming a beneficiary it is important to consider their age, ability to manage assets, pension plans, and any contingent beneficiary that is to be named. Beneficiaries also need to be named on any life insurance plans that are to be inherited. There are special tax considerations that need to be remembered for life insurance, pension plans, and IRA beneficiaries. Keep estate planning documents up-to-date with current beneficiary designations. It is a good idea to meet with an experienced estate planner to make sure beneficiary designations are done properly in compliance with local regulations.
See Lloyd Lofton, Addressing beneficiaries in estate planning, Life Health Pro, December 30, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.