Avoid Simple Estate Beneficiary Mistakes

Naming the right estate beneficiary is a very important part of estate planning or making a will. Many people commit mistakes when naming a beneficiary, and this can cause a lot of problems for family members or recipients later on. Below are some of the common mistakes you can easily avoid when listing the names of your beneficiaries.

Misspelled or Incorrect Names


One of the most common mistakes that can be avoided when naming your estate beneficiary is putting in misspelled or incorrect names. It is important that you double check the names of the people you want listed as your beneficiaries. This will ensure that your assets will go to your intended recipients.

Outdated Beneficiary Designations


It is a good idea to update the beneficiary names listed in your will, insurance policy and pension plan every time a life-changing situation or event occurs. Such events may include divorce, marriage or the death of a spouse or child.

Naming a Minor as Beneficiary

Minors can inherit only a small amount of money or a limited sum of assets. If you named a minor as a full beneficiary, the court will appoint a guardian to take care of the large portion of the inheritance until your beneficiary reaches the age of majority. For minor beneficiaries, you can set up a trust and appoint a trustee to better protect your heirs’ interests.

 

 

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