Many people make mistakes when handling their estate planning affairs. It’s important to take extra care so that your true wishes are respected and your estate plan works for you. One all too common mistake is the failure to update beneficiary designations. Take a look at the following information, to learn how to avoid this easy-to-make error. If you have any questions, or if you’d like to update your estate planning documents, contact an estate planning attorney.
Susan made a common mistake when handling her planning affairs after her divorce. While she remembered to make changes to her estate planning documents such as her will, revocable living trust, and powers of attorney, she forgot to update her beneficiary designations. Take a look below, to learn more:
Susan and Tim had been married for 20 years. As soon as they got married, they both decided to handle their planning affairs. They both chose to list each other as beneficiaries on their life insurance and retirement accounts.
After their bitter divorce, Susan rushed to update her estate planning documents. She wanted to make sure that Tim would not receive her property or have control over her health care and financial decisions.
However, she forgot to make changes to her beneficiary designations. Tim received a huge lump sum of cash and investments when Susan died in an unexpected bicycling accident. He inherited her life insurance of $500,000 and her retirement accounts of $767,400.
Don’t make this same mistake! Many people don’t update all of their planning, especially beneficiary designations. Make sure that you regularly review your estate planning documents, so that your current intent is respected. With the help of an attorney, you can review all aspects of your planning, to make sure that no errors are made.
If you have any questions, or if you’d like to review your estate planning, consult with a qualified estate planning attorney.