Having a beneficiary helps avoid confusion by clearly stating what happens to your finances if you pass away.
If you don’t name a beneficiary, you won’t have any control over who inherits them.
Remember, your financial assets can be inherited by one or more beneficiaries. However, the split percentage interest for each person(s) you list must add up to 100%.
If you don’t name a beneficiary, you won’t have any control over who inherits them.
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Directs Your Assets Instantly
A beneficiary designation ensures that your financial assets (e.g. life insurance policies and 401(k) plans) are transferred to a specific person, estate, or trust upon your death. This can help reduce legal headaches and tax implications. -
Overrides Your Legal Will
Beneficiary designations are contractual agreements between you and the financial institution holding the asset (e.g. life insurance policies and 401(k) plans). If the person(s) named on a beneficiary form is different from the person(s) specified in your legal will, the beneficiary designation takes precedence. -
Big Life Changes = Big Impact
Marriage, divorce, a new baby, or the death of a loved one can throw your beneficiary plans out of sync. It’s crucial to review your beneficiary designations regularly after significant life events and at least twice a year.
Remember, your financial assets can be inherited by one or more beneficiaries. However, the split percentage interest for each person(s) you list must add up to 100%.
Take 5 minutes today.
Set a reminder to review your beneficiary designations at least twice a year.
If you’re enrolled in one of these benefits, be sure to check each one separately:
If you’re enrolled in one of these benefits, be sure to check each one separately:
- Basic and Supplemental Life Insurance – log into Benefitsource.
- 401(k) Retirement Plan – log into Fidelity NetBenefits.
