Know the difference: beneficiary designation vs. will
Avoid these costly mistakes when making a beneficiary designation.
5. Not considering the financial or emotional readiness of beneficiaries.
Your heirs will get the money from your IRAs, retirement accounts, life insurance and annuities almost immediately upon your death, with no restrictions. If this worries you, consider naming a trust as beneficiary; then you can place limits on when and how the money is to be used.
You’re devoting a lifetime to accumulating assets. Make sure their disposition is managed the way you want, or your efforts could be for naught. If you have any questions about your current accounts’ beneficiary designations, contact your financial advisor and continue to review them as part of your routine meetings.
Neither Edelman Financial Engines, a division of Financial Engines Advisors L.L.C., nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.