Mistakes To Avoid When Naming Beneficiaries

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

In terms of financial planning, choosing a beneficiary is one of the most important decisions you will have to make. Why? By definition, your beneficiary is the person who will receive some sort of financial benefit upon your passing. That means they will acquire any and all of what you leave behind.

Do you already have a beneficiary listed? Since you'll want to ensure that your assets land in the right hands down the line, we recommend steering clear of the following mistakes:

1. Generalizing: When naming a beneficiary, you'll want to be as specific as possible. That means, for example, if you have more than one child or a cousin whom you would like to receive your assets, you'll need to clearly define their names. If you don't, you never know who might come knocking trying to pass as someone who falls under your category of "children" or "cousins."

2. Leaving Out Contingent Beneficiaries: Regardless of your beneficiary's age, you mustn't forget to plan for what would happen if they pass before you. When you fail to list a secondary beneficiary, you run the risk of losing your assets and ultimately leave it up to legal professionals to decide how they are dispersed.

3. Ignoring Financial Status and Intentions: Since your beneficiary will receive the money in a variety of accounts, you must consider if they are ready to receive it and what their intentions may be. If you are concerned about how your money will be used, it might be in your best interest to consult a financial advisor and your attorney to discuss your final intentions and what options are in your best interest as well as the best interest of your loved ones.

At the end of the day, the biggest mistake you can make is not naming a beneficiary. When you fail to plan for your passing, all of what you worked so hard to earn could end up where you least expect it to.

Is it time for you to name your beneficiary? At American Investment Planners LLC, we recognize the importance of naming beneficiaries properly and work closely with each of our clients to ensure that their assets wind up where they belong. For more information about the financial planning services we offer to families throughout the nation, please visit us at www.americaninvestmentplanners.com or give us a call at (516) 932-5130 or toll free at (866) 932-5130.