Let’s talk about something that can make a big difference in your financial planning—
beneficiary designations. What are beneficiary designations?
They’re a contractual way to distribute certain assets outside of your probate estate.
Here’s an example— Say you have a life insurance policy naming your spouse as the primary beneficiary to receive the proceeds of that policy on your passing.
But if your spouse isn’t there, a secondary beneficiary—like a child—can step in.
And it’s not just life insurance. Even checking accounts often pay out to named beneficiaries.
Why does this matter? Well, because stale beneficiary designations can undo an entire estate plan.
Imagine spending months crafting a plan for your grandchildren— but never updating your beneficiary designations.
Now everything goes to someone you didn’t intend. On the flip side—beneficiary designations can provide a quick access to cash for a surviving spouse
while the estate is being settled. Here’s the kicker—How do you change a designation after someone’s passed away? You don’t. That’s why I recommend reviewing them at least annually. Tie it to something easy—like your birthday or an annual meeting.
Beneficiary designations are a big piece of the financial planning puzzle.
Don’t overlook them. If you’d like to learn more, please reach out to your Truist advisor.