Beneficiary designations are becoming one of the “hot” topics in estate planning and litigation because of the amount of wealth being transferred. It is very important for you to know and understand whom you have named as your primary and contingent beneficiary of your retirement plans, IRAs, annuities, and life insurance. Remember, the beneficiary designation of your retirement plans, IRAs, annuities, and life insurance will determine who receives those assets, regardless of what your Will or Trust might say. Clients also need to understand what happens when a beneficiary of your retirement plan dies after inheriting the benefits from you, which can be explained to you by your lawyer or CPA.
Advice: You should review your beneficiary designation forms to ensure that these forms reflect your wishes. You should also review your respective contracts with these providers to determine what will happen to the benefits if both your primary and contingent beneficiaries predecease you.