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.

Estate Planning: What You Need to Know

Believe it or not, you have an estate. Virtually everybody does, no matter how extravagant or modest. Your estate is comprised of everything you own: your home, car, bank accounts, stocks and securities, personal possessions – everything.

When you pass away, you want to make sure that your estate is distributed to the people you care about most. That’s where estate planning comes in.

If you are new to the phrase estate planning, don’t worry. The financial professionals at American Investment Planners, LLC are here to tell you everything you need to know…

What is estate planning?

Estate planning is the process of legally arranging for the management and distribution of your assets upon death or disability.

Why do I need an estate plan?

Regardless of your age or the quality of your estate, you should have an estate plan for the following reasons:

• Know that your wishes will be carried out, and your assets will go your intended recipients.
• Maintain your privacy. If you do not have an estate plan, your assets can become public information in probate court.
• Protect yourself in the event of disability. If you do not choose who is in control of your care and assets, you may be appointed a legal guardian who might not act in your best interest.
• Minimize taxes. If you do not carefully plan, a significant portion of your money could be lost to state or federal estate taxes.

What is involved in an estate plan?

Preparing an estate plan is much more complex than listing out who gets what in the event of your death. Some of the major tasks of estate planning include:

• Creating a will.
• Naming an executor to oversee the terms of your will.
• Establishing a guardian for living dependents.
• Designating the beneficiaries on your various insurance and retirement plans.
• Limiting taxes by setting up trust accounts.
• Outline personal care instructions in the event of disability.
• Setting up funeral arrangements.

How can I start the estate planning process?

As you can tell, estate planning is a tall task. In order to ensure that everything is properly taken care of, it is recommended to draft your estate plan under the advisement of a professional estate planner.

Ready to sit down and start developing your estate plan? The professionals at American Investment Planners, LLC are here to help. To schedule an appointment with one of our estate planners, please call (516) 932-5130, or email info@americaninvestmentplanners.com.