Milwaukee, Wisconsin

A beneficiary is an individual or entity you select in your will and other legal documents, as well as your accounts, to receive your property and money when you pass away.  In an estate plan, there can be beneficiary designations for life insurance, workplace retirement accounts, and annuities.

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This document designates who will receive specific assets.

Things to Consider:

• Supersede Wills/Trusts: A beneficiary designation form, such as on an IRA, takes precedence over a will, even if the will is written at a later date.

• Avoid Probate: Assets with named beneficiaries pass directly to heirs outside of the court process (probate).

• Primary and Contingent Beneficiaries: You can name a primary beneficiary and at least one "backup" or contingent beneficiary in case the primary passes away first.

• Important Assets: Designations are used for life insurance, 401(k)s, IRAs, annuities, and POD/TOD (payable-on-death/transfer-on-death) bank accounts.

• Review Designations after Life Events: Review and update designations following divorce, marriage, birth of a child, or death of a beneficiary to prevent disputes.

• Minors and Special Needs: Minor children cannot directly manage significant assets. A Trust is usually considered for such beneficiaries.

• Specific Identification: Provide full legal names and correct identifying information to ensure smooth, quick transfers.

• Common Mistakes: Failing to update after a divorce, neglecting to update if a beneficiaries pass away, or forgetting to name a contingent beneficiary, and relying on default provisions.

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