What Should I Know about Beneficiary Designations?

What Should I Know about Beneficiary Designations?

A designated beneficiary is named on a life insurance policy or some type of investment account as the individual(s) who will receive those assets upon the account holder’s death. The beneficiary designation doesn’t replace a signed will but instead takes precedence over any instructions about these accounts in a will. If the decedent doesn’t have a will, and there is no beneficiary designation, the heirs may see a long delay in the probate court.


FEDweek’s recent article entitled “Customizing Your Beneficiary Designations” points out, however, that with your IRA, you probably spent far less time planning for its ultimate disposition, despite the fact that it probably houses a significant portion of your assets.





You can address various possibilities with this form, such as the scenario where your beneficiary predeceases you, or she becomes incompetent. Another circumstance to address is if you and your beneficiary die in the same accident.


