Beneficiary Designations – Who will get your money?

Beneficiary Designations – Who will get your money?

Print Friendly, PDF & Email


Although not a pleasant topic, it is an important one – Who is the named beneficiary of your retirement account should you pass away?
When you enrolled in your retirement plan, you were asked to select a beneficiary to receive your retirement plan assets in the event of your death. This step may be more important than you think, and it is imperative that you keep this information up to date.
Single
If you are single, your assets go to the designated beneficiary, no
Participant
Corner
The Retirement Times: June 2022 Page 5 of 5
matter what your will states. This also includes other agreements and court orders. If you fail to designate a beneficiary, the terms of the plan document govern the disposition of your account. Some plan documents provide that in the absence of a beneficiary designation your estate is the beneficiary, while others use a hierarchy or relatives who are the beneficiaries. Because of the variances in plan documents, it is important that a financial professional review the terms of your plan document when faced with determining who the beneficiary is if no beneficiary is designated.
Married
If you are married, your spouse automatically becomes the beneficiary of your retirement plan. Should you want to name an alternate, you and your spouse may have to sign a waiver in front of a notary.
Separation/Divorce
If you divorce and do not change the beneficiary on file, your ex-spouse will remain the beneficiary of your retirement plan account. This means that if you pass away, he or she will receive your money. This holds true regardless of the existence of children and regardless of the existence of a will which states otherwise. A common occurrence following a divorce is when you designate children as beneficiaries. If you remarry and pass away while married to your second spouse, the second spouse is automatically your beneficiary unless your new spouse consents to your children being designated as beneficiaries.
Death may not be prominent on your mind, but it is inevitable. It is important to be prepared and organized to make sure your wishes are fulfilled.

Print Friendly, PDF & Email


Related Posts

7 Tips to Prepare You for Retirement

7 Tips to Prepare You for Retirement

A secure and happy retirement requires careful planning and is a well-constructed process. Starting now will give you plenty of time to make the strategic changes and improvements that will bring your retirement goals closer to reality. Here are seven things you...

Financial Frost Checkup

Financial Frost Checkup

As the winter season blankets our surroundings, it's the perfect time to conduct a comprehensive review of your financial situation. Adapting to Life's ChangesReflect on the past year and consider any shifts in your personal, family, or financial life. If changes have...

Smart Portfolio Stress Testing: Your Retirement Safety Net

Smart Portfolio Stress Testing: Your Retirement Safety Net

You've been diligent—saving, monitoring retirement accounts, consulting your advisor. But are you prepared for life's uncertainties? Your retirement plan relies on assumptions: savings, investment duration, inflation, and returns. Life, however, loves throwing...

Share

Share this post.