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CHOOSING THE RIGHT BENEFICIARY




Let’s be honest, your assets, policies and estates are what you have worked for, your entire life, to pass on to your family and loved ones. Choosing the right beneficiary for each asset is a vital part of your planning.


A beneficiary could be a single person, multiple people, or an entity that you legally appoint as a recipient to receive asset(s) and estate(s), financial products, insurance, and retirement policies, after you have passed. There are primary beneficiaries and contingent beneficiaries.


It is also important to understand that not all policies and financial products are regulated by your will. Therefore, if you do not name a beneficiary, it may be unclear who should receive those benefits, and payments or distributed assets can be delayed for extended periods of time. Each product, policy, and asset should be named independently. You may choose the same individual(s)/entities; however, independently of another asset or policy. Please don’t assume a blanket form of beneficiary.


Be careful about choosing a minor as a beneficiary. Proceeds will legally go t the minor’s legal guardian until the minor turns 18 years old.


Questions and considerations to ask yourself when choosing beneficiaries may include:


1. If you do have children under the age of 18, who will their guardians be or the trustee of their money until they turn 18? Consider conditions to set for your children and how they can receive your assets.

2. Are there individuals who will need your financial help?

3. What is the ability of the considered beneficiary to manage money?

4. Are there individuals who may become greedy?

5. Which assets do you wish to remain in the family?

6. Are there any organizations in which you support? Do you wish to leave any legacy to these organizations? You may consider financial legacy, and even items such as an instrument to a musical organization.

7. Know the rules. You may want to work with a lawyer in establishing beneficiaries in accordance to the rules of your policies.


You may realize, this can become quite complicated, and it is extremely important to have an organized way of managing policies and assets, what can be named in a will, and keeping up to date on your named beneficiaries. The Red Notebook can absolutely help. Please contact us at 1-772-485-7432 to schedule an appointment, or email us at: therednotebookproject@gmail.com

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