Indentify beneficiaries
Hi Terry: Our will states that if any of our children pass away, that any financial resources due that person will go to the children of that person. We had 4 children. We lost one daughter 2 1/2 years ago: 1. Is it necessary to up date beneficiaries on our financial accounts? ie. savings, checking, IRA’s, CD’s, insurance policies, annuities, etc. Our daughter had 3 children. 2. Do we identify the 3 grand children or select one?
We enjoy reading your articles in the newspaper. Keep up the great work.
Thanking you in advance,
Terry Says
There is a big difference between updating your will and updating your beneficiaries.
The only accounts that have beneficiaries are retirement accounts, pensions, and insurance policies.
Yes, you can have a CD titled POD –payable on death to one person.
BUT, you cannot leave money directly to a minor. The state will step in and set up a trustee account — possibly with someone you don’t know as a trustee, until the child reaches the age of majority. That’s definitely NOT a good idea!
So the real answer to your question is YES — you should immediately go to an estate planning attorney and update your plan. Instead of a will, you might want to create a Revocable Living Trust — and retitle all your assets in the name of your trust.
Read this article. Or you can read the extensive description in the chapter from the latest edition of The Savage Truth on Money, available on Amazon for just $10.
If you leave it as is, with minor grandchildren and daughter deceased (my condolences, by the way), you’re just leaving a mess for someone else. Gather the info on ALL your financial accounts, and meet with an estate planning professional immediately.
