It’s important to have a plan in place for your assets to go to someone or something in the unfortunate event of your passing, and this can be established through having a beneficiary. A beneficiary is a person or an entity who you lawfully designate to receive the benefits of your financial assets. The typical assets and property that you would want to name a beneficiary for are bank accounts, retirement accounts, life insurance policy, and real estate. You can have multiple beneficiaries, specifying which ones will be the first to receive benefits, called the primary beneficiaries, and the ones to receive it in the event all primary beneficiaries are deceased, called the secondary beneficiaries.
If you were to not name a beneficiary, your assets would be distributed by the state, resulting in the possibility of your desired inheritors not receiving what you would have liked them to. It allows you to control your financial property and ensure that everyone who will depend on your assets is properly supported. Naming a beneficiary also simply provides the opportunity to prevent the distribution of your assets from becoming an unnecessarily stressful situation for all those involved.
You can name your beneficiary at the financial companies where you have your assets. For example, if you’d like to add a beneficiary to a bank account, you would simply have to request for the name(s) to be placed onto the account. This is generally done through filling out a document or completing the process in person.
Nearly anyone can be named as your beneficiary, but different states may have specific requirements. You will need to have the following information from your desired beneficiary:
· Their full legal name
· Relationship to you
· Date of birth
· Mailing address
· Social Security number
Having a beneficiary allows your loved ones to focus on finding peace during a difficult time.