Bank and investment accounts, life insurance policies, and retirement plans probably make up a significant portion of your estate. Did you know they are often an overlooked part of estate and charitable planning?
Take our quiz to brush up on your knowledge.
True or false: Adding or changing a beneficiary designation is quick and easy.
TRUE. Often it’s as simple as making changes online or filling out a form and mailing it to your financial institution. Your plan administrator or account executive can show you how.
True or false: I can name more than one beneficiary to receive my assets.
TRUE. You can divide your accounts among a surviving spouse, other loved ones and even a charity as you choose. Be mindful of your choices, such as the tax impact of leaving a retirement account to a non-spouse heir. It may be better to give some or all of those tax-heavy assets to charity and to use other assets to provide for your heirs.
True or false: My will or trust controls the distribution of all my assets.
FALSE. Beneficiary designations overrule a will or trust. Consult an advisor to make sure your named beneficiaries are consistent with your overall estate planning efforts.
True or false: Once I’ve designated a beneficiary for my account, I won’t ever need to think about this again.
FALSE. Life is ever changing and events such as moving to another state, birth of grandchildren, loss of a loved one, a change in marital status, and changes in your charitable interests, can affect your beneficiary designations. It’s a good habit to regularly review them to make sure they are up to date and reflect your wishes.
TIP: If you name a charity as beneficiary, use the charity’s full legal name, such as Baystate Health Foundation, Inc. We would be happy to work with you or your advisor on any additional language that may be needed to capture your wishes for the impact of your gift.