Month: March 2021

Misconception: “My designated beneficiaries on my IRAs and 401(k) are no longer relevant because I have had my estate planning done and I have a living trust.” Not so – don’t make this mistake. Bottom Line The beneficiary statement, whether it is for your 401(k), IRA, life insurance and so on is a will substitute. It matters not how your wills or trusts are written; the beneficiary statements dictate where those monies go. We recommend that you have your estate planning attorney periodically review these to make sure they are properly coordinated with your overall estate plan. Tell Me More This item deals with the transfer of asset at death. When a person passes away, each financial institution will look for an instruction about who should inherit the money. In many cases, a beneficiary is designated upon account establishment, such as in the case of a 401(k), IRAs, life insurance policies and so on. A beneficiary designation provides the necessary instruction to the institution for the distribution of the asset. But in cases where there is no beneficiary designation, such as an individual account or real estate, there is no instruction about to whom this money should go. As such,