Life can change in an instant. Milestones like getting married, the birth of a child, divorce, or the loss of a loved one are often filled with a whirlwind of emotions and responsibilities. During these moments, tasks like updating beneficiary forms rarely make it to the top of your to-do list. However, neglecting this crucial step can result in unintended consequences for your estate and loved ones. You must protect your legacy.
Your beneficiary designations are a critical piece of your financial plan. They ensure that your assets are distributed according to your wishes quickly, efficiently, and without unnecessary confusion. Overlooking them or failing to update them after major life changes can lead to costly mistakes and complications for those you care about most.
Protect Your Legacy with this Checklist
To help simplify this process, we’ve created the “Beneficiary Form Checklist”—a guide to ensure your beneficiary forms are up to date and your legacy is protected. Here are some key steps included in the checklist:
- Locate and Verify Forms:
- Are copies of your beneficiary forms accessible and accurate?
- Do they match the records on file with your Trustee, Custodian, or plan provider?
- Evaluate Life Events:
- Have there been recent changes like births, deaths, marriages, divorces, or adoptions that could affect your designations?
- Are there special needs beneficiaries or others requiring updated consideration?
- Review Tax & Legal Implications:
- Are your forms compliant with recent IRS rules, such as those from the SECURE Act?
- Do they align with current federal and state estate and tax laws?
- Clarify Beneficiary Allocations:
- Have you clearly outlined primary and contingent beneficiaries, ensuring the percentages add up to 100%?
- If you have multiple beneficiaries, should separate accounts be created now to avoid future disputes?
- Ensure Redundancy:
- Do you have signed copies of your most recent forms on file with your Advisor and Trustee/Custodian?
- Is there an acknowledged backup copy to safeguard against misplacement?
- Coordinate with Your Estate Plan:
- Does your estate plan account for retirement assets, which pass by beneficiary designation and not through your will?
Don’t Neglect Updating Your Legacy
Neglecting to review and update these forms after major life events could leave your loved ones facing unintended delays, tax burdens, or even disputes over your assets. Take these steps today to ensure your wishes are honored and your legacy is preserved.
Download our “Beneficiary Form Checklist” below to get started and bring any questions you have to our next meeting.
Financial Success Doesn’t Happen by Chance.
Contact lead advisor Chris Robinson, ChFC, at our office, 940-464-4104, to schedule a time to discuss your beneficiary or investment questions or schedule a free virtual consultation here.
RFG Wealth Advisory in Argyle, Texas, is an independent, fee-only Registered Investment Advisor firm that always puts our client’s interests first. We have a transparent, simple fee structure that’s easy to understand. Your financial success and legacy deserve nothing less.
Investment advice is offered through RFG Wealth Advisory, a Registered Investment Advisor.
