Overlooked Beneficiary Designations Can Lead to Undesired Results

When you have a change in marital status or a birth or death in the family it is often generally assumed that if you have make the appropriate changes to your will that you will have accounted for these changes and your final bequest desires will be honored.  Unfortunately, many people forget to consider beneficiary designations that have been made on IRAs, Pensions, Annuities and Life Insurance Policies.  The beneficiary designations made on these financial instruments and plans take precedence over bequests made in wills and can often lead to disappointing surprises for family members you leave behind.  Any time you have a change in the status of your family or final bequest desires, request information as to the beneficiary designations you have listed for these financial instruments and complete a change of beneficiary designation form for the appropriate entity to affect your desired changes.  You can make your estate the beneficiary of these instruments, but doing so can often lead to unintended income tax consequences.  It's best if you consult with your CPA or estate attorney to insure that you are making the best choices.