Designating beneficiaries for life insurance policies, retirement accounts, payable-on-death accounts, and others is not a one-time task. These designations may need to be reviewed and adjusted regularly.
If you are in the Coral Gables area and are not updating beneficiary designations, you could be nullifying their validity by accident. An experienced estate planning attorney can help you make timely updates and keep all designations intact.
When a person designates beneficiaries, they decide exactly how the asset distribution will proceed after they are gone. These designations override those mentioned in Wills and trusts. Since they have the biggest power, failing to make updates could lead to distribution mistakes. For example, an ex-spouse may receive the assets the decedent wanted their children to have.
Failing to update beneficiaries may cause unnecessary issues for the family members after the person’s passing. If the wishes are not clearly stated, disputes are likely to arise, which could delay the asset distribution process.
Since family and life situations change regularly, so can the beneficiaries. Regularly reviewing and updating the beneficiary designations is a smart approach, and a skilled Coral Gables attorney can help do it properly and on time.
Several situations and events can warrant an update in beneficiary designations. The following are the most common situations where this might occur.
A spouse does not automatically become a person’s beneficiary. If the individual wants the spouse to gain access to certain accounts, they have to update the beneficiary designations. Under certain conditions, beneficiary designations may be revoked during the divorce. However, it does not happen in every case, so a manual update may be necessary.
When a new child enters a family, the parent may want to add them as a beneficiary. Even if the child is still young and parents are healthy, doing so can prevent future misunderstandings. Failing to update the designations could unintentionally exclude the child from receiving any share of the asset.
When a named beneficiary passes away, the contingent beneficiary takes their place. However, if the person fails to name that contingent beneficiary, the asset could go to the estate and trigger probate.
Over time, relationships can change. If a dispute that occurs between friends or relatives leads to estrangement, the beneficiary designations must be updated accordingly.
If the person opens a new retirement account, switches life insurance providers, or closes an existing account, they must review beneficiary designations for each. Assets without named beneficiaries could end up in probate.
The process of beneficiary designation updates does not have to be complicated for testators in Coral Gables. The account owner has to contact the relevant entities and inform them about the decision, but making sure that everything is done according to the law requires a professional review. An experienced estate planning attorney can handle updates and ensure their validity.
If you are thinking about updating beneficiary designations in Coral Gables, you need legal advice. Doing this according to the law means avoiding mistakes right now and stress for the loved ones in the future. Veliz & Associates, P.A., can guide you through the complexities of such updates. Call us to schedule a consultation at any time.
We evaluate your case and determine how we might be able to help.
We will meet with you to discuss your next options and lay out a plan.
Our team guides you throughout the process so you feel confident about your choices.
(305) 250-9917