How to Create a Beneficiary Plan in 5 Simple Steps

When you pass away, you want to make sure your assets are given to those you love and care about. That’s why designating beneficiaries is one of the most important parts of estate planning. Without proper beneficiary designation, your assets could be lost to taxes, probate court, or unintended recipients.

Here’s how to create a comprehensive beneficiary plan in five simple steps:

1. Consult with a financial professional at American Investment Planners. Estate planning has many legal complexities. Our financial professionals are already familiar with these intricacies and can recommend the best course of action for your situation.

2. Review your assets. Next, work with your financial advisor to compile a list of your assets. Don’t forget to include real estate properties, savings accounts, IRAs, employer-sponsored retirement accounts, stocks, and bonds.

3. Designate your primary beneficiaries. For each of your assets, designate a primary beneficiary. This is the first person you wish to receive the asset in the event of your death. You can name multiple people, charities, or organizations as your primary beneficiary, you just need to specify which percentage goes to each party.

4. Designate a contingent beneficiary. If your primary beneficiary predeceases you, there could be legal complications. Unless you name a contingent beneficiary, who will receive your assets in the event of an untimely death to your primary beneficiary.

5. Inform your beneficiaries of your decisions. Once you have named your beneficiaries, let them know. This will not only help them feel better prepared for when the time comes, but it also increases the likelihood they will actually receive what they are entitled to.

Need help creating an estate plan? The financial professionals at American Investment Planners, LLC are here to help. We will sit down with you, listen to your needs, and work together to develop an estate plan that best suits your situation. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.