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Why should you regularly review your beneficiary designations?

On Behalf of | Oct 21, 2021 | Estate Planning |

One of the first things people do when creating an estate plan is list their beneficiaries and decide what to leave. Making such a list ensures you do not overlook any loved ones in your will and trust documents.

Contrary to popular belief among many Colorado residents, designating your estate beneficiaries is not typically a “one and done” task. A regular review of your designations ensures no one goes overlooked and that your estate plan continues to function as you intended.

3 crucial reasons to look over your designations

A top reason to evaluate your estate beneficiaries regularly is to ensure these designations do not conflict with those in other financial documents and accounts.

For example, say you name several family members in your will to receive your retirement account funds when you die. If the will designations do not match the beneficiaries named in your retirement account, the retirement account designations typically take precedence.

A second reason to review and modify your beneficiaries is when a family member enters or departs your life.

For example, if you have a baby or grandchild, you should review and change your estate planning documents to account for your new loved one. At the same time, if a spouse or other loved one dies before you, changing your beneficiary designations is also necessary.

A third reason to reassess and change your estate plan beneficiaries is that you get a divorce.

Many people put off or perhaps forget to make beneficiary changes following a Denver divorce. Unless you want to leave something behind for your ex after you die, it is wise to address your designations as soon as your divorce concludes.

Learn more about estate planning and beneficiary designations to ensure your estate plan continues to meet your needs.

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