Although estate planning can provide you with significant protections, most people want to take measures to provide for their loved ones. When it comes to designating your beneficiaries, there are numerous common mistakes that you will want to avoid. Of course, working with a knowledgeable estate planning attorney will help you prevent such errors, but below are examples of mistakes you want to avoid when designating the beneficiaries to your estate plan, life insurance, or retirement plan:
- Failure to name a beneficiary
- Failure to name a contingent beneficiary
- Failure to update or change your named beneficiary if you divorce
- Designating a beneficiary who receives needs-based government benefits (such as an individual with special needs)
- Naming minor children as beneficiaries
- Failure to change a beneficiary designation when your original beneficiary dies
- Designating a beneficiary that has serious creditor problems
- Naming a beneficiary that is incapable of properly managing money or assets
- Mistakenly believing that your estate planning documents will control your life insurance or retirement account beneficiaries
The above mistakes are often made when people attempt to draft their estate planning documents without professional guidance. You only get one opportunity to create your estate plan, so don’t put it at risk of not being done right. Estate planning involves fitting numerous pieces of a puzzle together and beneficiary designations are an important piece. Avoiding mistakes in naming your beneficiaries ensures that your property will be passed how and when you choose.
Let us help you create or update your estate plan and your beneficiary designations. The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.