Legal and planning
Beneficiary designation
A beneficiary designation names who receives an asset when the owner dies. It is common on retirement accounts, life insurance and some bank accounts. It usually passes the asset directly to the named person and, in most cases, overrides a will.
Why it matters for your family
Beneficiary forms are easy to forget and costly to get wrong. An outdated form can send money to a former spouse or to someone who has died. In most cases the form controls, even if the will says otherwise. The National Institute on Aging lists reviewing these items in getting your affairs in order. Families should check accounts after a marriage, divorce, birth or death. A common mistake is naming a minor child or a disabled relative without a plan, which can cause legal trouble or affect benefits. An elder law attorney or a tax professional can advise. This is general information, not legal or tax advice.
Source: nia.nih.gov
Read more: What is Elder Law and Do You Need an Elder Care Attorney?
Related terms
- Last will and testamentA last will and testament is a legal document that says who receives a person's property after death.
- Revocable living trustA revocable living trust is a legal arrangement in which a person places assets in a trust and keeps the right to change it.
- Special needs trustA special needs trust, also called a supplemental needs trust, holds money for a person with a disability.
- Life insurance with long-term care riderA life insurance policy with a long-term care rider lets the owner use part of the death benefit while alive to pay for qualified care.
- Elder law attorneyAn elder law attorney is a lawyer who focuses on legal issues of older adults.
- Letters of testamentaryLetters testamentary are a court document that confirms an executor's authority to act for an estate.
