Posted on December 21, 2005 at 17:05:58:
Each year, when you receive your year-end report from your IRAs, 401(k)s and other financial assets, do you also get an acknowledgement of your beneficiaries? Is the listing accurate and up to date? Truth is, many reports are not.
It’s wise to review your accounts and insurance policies to make sure that proceeds will go where you want them to. The errors are often the fault of the companies involved, but correcting them is the responsibility of the owners.
Time was, only retirement accounts and insurance policies carried beneficiary designations, but a transfer-on-death/designated beneficiary option has been extended in most states now to taxable accounts as well. These arrangements take precedence over any disposition of assets in other estate-planning documents, such as a will. Because assets pass directly, these accounts are sometimes presented as a way to avoid probate.
Happy Holidays to all!