FAQ Friday: Updating your Beneficiaries
On Friday, January 6th, Mr. Berger describes why and when you should update your beneficiaries.
You should go through every account with named beneficiaries. Make sure none of those designations are now deceased. If they are and you chose “per stirpes”, then it may go to their children in equal shares. If you had multiple beneficiaries, it might just be split between the remaining two.
When charities are involved, there could be different tax implications. Make sure the charity didn’t change their name or cease operations or that you are still happy with that charity of choice.
Trusts or sub-trusts are sometimes chosen, but maybe the trust is no longer needed such as when children are now grown.
Sometimes there is a merger such as Truist with Suntrust and sometimes updating the bank/company information can be helpful.
Always make sure you have contingent beneficiaries.
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