Is It Time To Review Your Beneficiary Designations?

Is It Time To Review Your Beneficiary Designations? 

Relationships change over the years, and it is fairly common to forget to update beneficiaries in light of new planning goals. If you can't remember the last time that you checked your beneficiary designations, it's time for a beneficiary review. A periodic review will help keep your beneficiary designations in alignment with your overall estate planning goals. Who will get your retirement accounts and life insurance policies when you pass away? This exercise aims to ensure that your beneficiaries align with the instructions of your will or trust (you do have a will, right?). After this process, you can rest assured that the individuals (or charities) your will designated, will actually receive the funds (at least until it's time for another review).

In your review, you'll want to:

• Verify your beneficiaries are up to date to reflect your estate wishes accurately and to consider factors that may affect your heirs' outcomes. 
• Discuss whether your account will transfer the way you intend if your named beneficiaries differ from what your will or trust dictates. 
• Address whether you need to be concerned about an estate tax liability and review your existing beneficiaries to determine whether you can mitigate any potential estate tax issues. (Applicable for estates over $13,610,000 in 2024).

Whatever the case, it is important to review your beneficiary designations periodically. Conducting a periodic beneficiary review every three to five years will give you a clear picture of your beneficiaries and whether your beneficiary designations align with your estate planning goals. 

Click the one-page beneficiary review checklist below that outlines eight fundamental considerations to consider when reviewing your beneficiary designations. 

Beneficiary Review Checklist

While the checklist can help you identify all the opportunities to consider, you may also want to meet with a financial planner to discuss your finances and goals and identify the best opportunities. For over two decades, the CFP® professionals at Hurlow Wealth Management Group have conducted periodic beneficiary reviews as part of their fiduciary financial planning process. Call 812-333-4726 today or click here for help aligning your estate plan with your financial plan.

Services offered through Hurlow Wealth Management Group, Inc., a Registered Investment Adviser. Hurlow Wealth Management Group, Inc. does not provide tax, legal or accounting advice.  Advisory services are only offered to clients or prospective clients where Hurlow Wealth Management Group, Inc. and its representatives are properly licensed or exempt from licensure.  Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Hurlow Wealth Management Group, Inc. unless a client service agreement is in place.