Planning for the Next Generation

Why you should regularly review beneficiaries

Imagine this. Your ex-spouse is enjoying a fabulous cruise around the world thanks to your generosity following your untimely death.

Sound good? No? Well, it’s happened to more than one unfortunate soul, and all because they didn’t take the time to review and update their beneficiaries when they got divorced. The truth is it’s easy to jot down a beneficiary for a 401(k) plan or life insurance policy and then forget about it. That person may have been exactly who you wanted to receive your assets at the moment, but situations change over time, and so can who you want to receive your assets.

In addition, many investment accounts allow you to name a name a “trusted contact” who your financial advisor can reach out to in the event that you begin to make unusual or irrational decisions, which sadly can happen when people begin to experience dementia or are the victim of fraud.

As the old saying goes, it’s better to be safe than sorry. Review your beneficiaries and the titling of assets at least annually with your financial advisor to ensure the legacy you want to leave is realized.