When you open a retirement account or buy a life insurance policy, you’re asked to name a beneficiary. It might seem like just another form to fill out, but this simple step can affect your family’s future.
Many people don’t give beneficiary designations much thought after signing the initial paperwork. It may have been years ago, and life has moved on. But this might surprise you: These designations can override what’s in your will or living trust. That means your retirement accounts and insurance proceeds could end up going to someone you didn’t intend, creating what professionals call an accidental inheritance.
Life changes quickly. You might get married, divorced or remarried. You might have children or stepchildren. A loved one might pass away. You may decide to give to your favorite charity. Any of these events could mean it’s time to update your beneficiaries.
