The Benefits of Choosing Beneficiaries

When a family member passes away without an estate plan, more than one-third of Americans have either been involved in or observed strife. According to the 2023 Wills Survey by Caring.com, while the majority of people think having an estate plan is crucial, only a third actually have one.

Despite the fact that the majority of adults in the United States believe all they need for an estate plan is a will, creating a comprehensive estate plan that is both practical and efficient entails more than just doing this. 

Reviewing assets like 401(k)s, pensions, and savings accounts to make sure you have designated beneficiaries for each is an essential but frequently disregarded part of estate planning. 

Keeping Probate from Occurring

Most of the time, by naming beneficiaries, you can avoid the probate process and have your assets go immediately to your loved ones. The court must supervise the allocation of an estate's assets during probate.

By naming beneficiaries, you can avoid probate and benefit your loved ones in a variety of ways. 

• It helps you save money. According to Legal Zoom, the costs of the probate procedure might take up to 10% of an estate. 
  
• Time is saved. In some areas, the probate procedure itself might take months or even years to complete. 
  
• By naming beneficiaries, you can assist ensure that your desires are followed. Even if you have a will, someone may fight it and question its legality. 

Making beneficiary choices for each item is crucial because if you don't, your assets will become part of your estate and be subject to probate. Your possessions may end up in the hands of someone other than who you planned. 

By going over your assets and making sure your loved ones are designated as beneficiaries, you may provide an extra layer of security that they will receive the things you intend to leave for them. 

Multiple Beneficiaries and Successors

You often have the option to designate more than one beneficiary. For instance, a parent of two kids could desire to leave something to both of them. You can specify how much of the asset each child receives based on the type of asset.

Taking into account successor beneficiaries is also essential. Upon the death of the original beneficiary, a successor takes possession of the asset. On a pay-on-death account, for instance, you may designate a beneficiary and a successor.

Changing Beneficiaries

You can modify who you name as a beneficiary when your relationships and circumstances change. A beneficiary you name on a property, such as an account, only comes into ownership after your death. In general, they won't have an ownership stake in you as long as you're still alive and capable of managing your own affairs. 

Estate Planning Attorney

It might be difficult and complex to organize your assets for future planning. A competent plan to pass your assets to your loved ones in accordance with your intentions can be created with the assistance of an estate planning lawyer. To make a strong estate plan, you can assess your assets with the assistance of a local estate planning lawyer and name beneficiaries.