Do Your Beneficiary Designations Match Your Estate Plan?

A very common question that I receive from many Tennessee families is what they should be doing with their bank accounts and financial accounts since they have beneficiary designations. This is a very common question and adds to a level of confusion for many people.

For instance, I was working with a family recently from Mount Juliet and the parents had put together an estate plan leaving everything they owned at death to the church. The surviving family was not at all upset by this, as the family had discussed this many times before and it was understood that they would be leaving any wealth they left behind to the church. Unfortunately, the parents of this family both had IRA accounts and a large investment account where they named the children as equal beneficiaries on the account. This is where a large percentage of this family’s wealth was located. Unfortunately, what this meant was that the IRA accounts and the investment account passed directly to the children equally and not to the church, as was this family’s wishes.

As the above story shows, it is extremely important to have your beneficiary designations to match your estate plan. When your beneficiary forms on your financial accounts and your estate plan differ it can lead to disagreement among the surviving family members, and even worse, take the family through a very expensive, public, and long court process where family relationships may never be the same.

Whenever you plan your estate, it is important to make sure your beneficiary designations on your financial accounts match your estate plan.

If you have questions about estate Planning in Tennessee, establishing a revocable living trust or an irrevocable trust, avoiding nursing home poverty and Medicaid planning, probate or any other estate planning topics, then I encourage you to attend one of our live free educational events scheduled this month. At these events, you will hear a lot of real life stories about families that paid thousands of dollars in unnecessary expenses, families that were able to avoid unnecessary expenses, and families that were able to protect their assets from unnecessary nursing home costs and expenses.

I look forward to speaking with you at one of our upcoming live educational events!

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