Beneficiary Designations in South Miami
Get your Assets to the Right People!
Most of us will think about a will when we think about death, as well as estate planning. However, a critical and typically overlooked aspect involved in an estate plan is establishing beneficiary designations. As more and more individuals continue pouring money into their IRAs or retirement accounts, ensuring that these assets get distributed to the right people or groups remains even more important.
It is vital to ensure updated beneficiary designations in South Miami to complement any estate plan that you put in place. If you can’t follow through with changing these beneficiaries, you can essentially throw your estate plan in the trash. Most likely, the plan you put in place in your estate planning documents will wield no funding when you die.
Unfortunately, stating how you want your assets distributed is not enough. Up-to-date beneficiary designations in South Miami remain the best method to ensure your assets go where you intend.
Beyond providing security in knowing your assets will reach where you desire, beneficiary designations in South Miami offer many beneficial tax advantages for your loved ones as well. A significant consequence of not naming beneficiaries or naming an estate the beneficiary is that these assets remain taxable for five years after death.
When you name your loved ones or a trust as beneficiary, these funds can be withdrawn throughout a more extended period. This enables these accounts and assets to grow with tax-deferred benefits!
Beneficiary Designations in South Miami are More Important than a Will or Trust
Numerous individuals spend thousands of dollars on cultivating wills and trusts to care for their loved ones and ensure they posthumously transfer their assets how they wish. Although most people think that a will or trust controls asset distribution, beneficiary designations in South Miami supersede a will or trust.
On most accounts, you can establish designated beneficiaries. This includes bank accounts, savings bonds, pensions, and retirement accounts. In the case of a life insurance policy, this benefit isn’t even distributed to the estate. Instead, it pays out to the beneficiary as listed on the policy.
Despite the amount people spend on high-priced legal entities to establish wills and trusts, this means nothing without coordinated and updated beneficiary designations in South Miami. This establishment overrides what an attorney writes in a will or trust.
While wills and trusts legally control the money in an account when you die, beneficiary designations outline how to distribute assets before it even hits the estate. As a result, nothing remains present for the will or trust to distribute or control.
Beneficiary designations in South Miami additionally protect assets from the probate procedure. This is often a time-consuming, expensive process that adds many obstacles your heirs must overcome.
Changing beneficiaries is typically an easy process. Nonetheless, depending on the asset type, it may require extensive paperwork. Banks require a filed “Payable on Death” form, while investments ordinarily need “Transfer on Death” paperwork.
Obtaining the necessary documentation for beneficiary designations in South Miami is. However, ensuring assets reach who you want is not.
Verifying Beneficiary Designations in South Miami Regularly
It is essential to review accounts while updating beneficiaries on each account you own. This may seem like a substantial task; however, most resources can accomplish this in about 10 seconds through their website.
You should update any beneficiaries immediately for an annual review when you experience any life changes, or determine that an incorrect beneficiary exists on the account. Ask yourself if you want an individual or group to receive the assets and take pause. If you cannot answer this question confidently, change the account.
Assets commonly reach individuals that we don’t intend due to beneficiary designations that remain out of sorts with changes in our lives. Maintaining beneficiary designations is a crucial facet to your family’s well-being after your death.
Beneficiary Designations in South Miami with Law Office of Madelin Diaz, P.A.
Determining and implementing beneficiary designations in South Miami remain essential parts of anyone’s financial and estate plan. Neglecting these could mean that assets that normally avoid probate become a part of an estate. In this scenario, these assets then endure subjection to the time and cost issues associated with the probate court.
Making and maintaining beneficiary designations enables you to show your love and appreciate for those that are important to you. It additionally establishes and executes your best wishes posthumously after your demise.
For the best possible outcome, you should enlist an experienced estate planning attorney. This legal professional can help guide you through review and execution of a comprehensive estate plan. Their services will include replacing unwanted beneficiaries and guaranteeing consistency between beneficiary designations and the flow of the overall estate plan.
When you feel in danger of your best wishes being disregarded by an executor, or the legal system. The attorneys at the Law Office of Madelin Diaz, P.A. can help you ensure your affairs remain in order. We work to ensure that your best interests, as well as assets, remain protected after you die.
Although a well-drafted will or trust is an aspect of a good estate plan, nothing is more important than utilizing beneficiary designations in South Miami as appropriate. However, these designations must remain in coordination with the rest of the plan.
For more information on how our attorneys can help you with your estate plan including beneficiary designations in South Miami, contact our dedicated firm today to schedule a consultation!