slnlaw
  • Home
  • Employment Law
    • Guide To Employment Law Content
    • Employment Contracts in Massachusetts
    • Discrimination in the Workplace
    • Employment Termination >
      • Massachusetts Paid Family Leave
      • Severance Pay
      • Unemployment in Massachusetts
    • Sexual Harassment at Work >
      • Sexual Harassment in a Small Business
      • Sexual Harassment and Non Disclosure Agreements
      • Sexual Harassment and Remote Work
    • Wage and Hour Laws
    • Independent Contractor Law
    • Non Compete Agreements >
      • Are non competes enforceable
      • Massachusetts Non Compete Act
      • Pre 2018 Massachusetts Non Competes
  • Estate Planning
    • Guide To Estate Planning Content
    • Legacy Protection
    • Why You Need an Estate Plan
    • Why You Don't Have an Estate Plan
    • Estate Planning Documents >
      • Children with Special Needs
    • Planning for Assisted Living
    • Probate Process
  • Business Law
    • Guide To Business Law Content
    • Small Business Law
    • Business Contract Basics
    • Civil Suit Defense
    • Legal Issues for Start Ups
    • Trademark Basics
    • How to Incorporate
    • Sale of Business
  • About
    • Reviews
    • Slnlaw Offices
    • slnlaw core values
    • Publications and Interviews
    • New Client Intake and Consultation
    • Contact
  • Attorneys
    • Emily Smith-Lee >
      • 2018 Lawyer of the Year
    • Jenna Ordway
    • Rebecca Rogers
    • Sharleen Tinnin
    • Elijah Bresley
  • Legal FAQs
    • Estate Planning FAQs
    • Probate FAQs
    • Small Business FAQs
    • Wage Act FAQs
    • Commission Pay FAQs
    • Overtime FAQs
    • Independent Contractor FAQs
    • Non Compete FAQs
    • Employment Discrimination FAQs
    • Employment Termination FAQs
    • Massachusettts Unemployment FAQs
    • Severance Package FAQs
    • Medical Leave FAQs
    • Sexual Harassment FAQs
    • Employer FAQs
    • Civil Lawsuit FAQs
  • Blog

The Importance of Updating Beneficiary Designations

Though it is important to make a plan for distributing your assets that will pass through probate, it is equally important to remember those that will not. Your life insurance policies, retirement plans and investment accounts are an important part of your estate planning.  If you do not take them into account and update as life changes occur, even your best estate planning may not achieve what you want.

Life Insurance Beneficiaries

If you have life insurance, you filled out a beneficiary designation form at some point. This form identified who should get the proceeds of your policy. Those beneficiary designations trump whatever is in your estate plan. For this reason, it is important that you review the designations whenever you have a major life change, even if you don't also amend or re-write your will.

For example, most married couples name each other as beneficiary. When they have children, they may amend this to name their spouse as primary beneficiary and their children as contingent beneficiaries. This means if your spouse is not alive when you pass you have ensured your children receive the benefits.

If you get divorced and do not change your beneficiaries, your ex-spouse will still receive your insurance proceeds, not your children. If your spouse passes before you, it will go straight to your children even if they are minors. If your spouse passes before you and you have not named your children as contingent beneficiaries, the proceeds will have to go through probate court and pass according to your will.

For all of these reasons, if you have a major life change you should contact your insurance company to review your beneficiaries and update as necessary.

Retirement and Investment Account Beneficiaries

Most retirement accounts and investment accounts also allow you to designate beneficiaries. The same issues arise here as with life insurance. As the account owner, you can update or change these designations any time you want. But after your death, the funds will distribute according to your last designation, so you want to make sure you have properly updated these to reflect your wishes.

Need Help With Your Estate Planning?

Call (781) 784-2322
OR
Schedule a Free Information Call

Just Looking for Information?

Massachusetts estate planning guide slnlaw
Request Our Free E-Book

Bank Account Payable on Death Provisions

If you and your spouse are joint account holders, your spouse will automatically receive the proceeds and accounts on your death. If you are unmarried or have accounts only in your name, you should ask your bank whether they have a payable on death or transfer on death form that you can fill out.

If this is available and you fill out the forms, you can designate who receives the proceeds of your account regardless of what your estate planning documents say or how state law would distribute your assets.

Life Changes That Should Prompt You to Review Beneficiary Designations

Marriages, divorces, and the death of a spouse are obvious moments to review your accounts and beneficiary designations.

Other life changes matter also. When your children become adults, you may want them to receive something on your death directly. In that case, you have to change them from contingent beneficiaries to a share of the primary distribution on your life insurance and/or retirement accounts.

How Non Probate Assets Affect Your Estate Planning

When you go to create an estate plan, it is important to discuss all of these non probate assets with your estate planning attorney.

First, the value of these assets counts toward your estate tax liability even though they do not pass through probate. If your attorney does not know about all of these assets, he or she may not have all the information needed to protect your family from taxes.

Second, when you think about your estate and your heirs it is important to consider the whole picture. You may think your spouse is getting their fair share of the entire estate because they are receiving life insurance proceeds. But even if you then leave the rest of your assets to your children or someone else, your spouse can still claim a spousal share of the probate assets. This may mean your estate is divided in a way other than what you intended.

How We Can Help

Beneficiary designations estate planning lawyer Jenna Ordway
Jenna Ordway
Rated by Super Lawyers


loading ...
Beneficiary planning estate attorneys slnlaw MA
We are ready to help you  put a comprehensive plan in place that meets all of your needs and your family's needs.  We have a simple process for getting you from wherever you are now to executed and final documents and your peace of mind.  It starts with an initial consultation, which is absolutely free.  You can use the button below to schedule your free information call, or simply give us a call at  781-784-2322.
Schedule a Free Information Call

Sharon MA

46 South Main Street
​Sharon MA 02067

(781) 784-2322
Serving Eastern and Central Massachusetts
Greater Boston Referral Resources
slnlaw solutions
Refer a Friend
slnlaw publications and interviews
​slnlaw privacy policy
Chester MA
26B Main Street
Chester MA 01011
(413) 667-2322
Serving Western Massachusetts
Western MA Referral Resources

Copyright 2022, slnlaw
  • Home
  • Employment Law
    • Guide To Employment Law Content
    • Employment Contracts in Massachusetts
    • Discrimination in the Workplace
    • Employment Termination >
      • Massachusetts Paid Family Leave
      • Severance Pay
      • Unemployment in Massachusetts
    • Sexual Harassment at Work >
      • Sexual Harassment in a Small Business
      • Sexual Harassment and Non Disclosure Agreements
      • Sexual Harassment and Remote Work
    • Wage and Hour Laws
    • Independent Contractor Law
    • Non Compete Agreements >
      • Are non competes enforceable
      • Massachusetts Non Compete Act
      • Pre 2018 Massachusetts Non Competes
  • Estate Planning
    • Guide To Estate Planning Content
    • Legacy Protection
    • Why You Need an Estate Plan
    • Why You Don't Have an Estate Plan
    • Estate Planning Documents >
      • Children with Special Needs
    • Planning for Assisted Living
    • Probate Process
  • Business Law
    • Guide To Business Law Content
    • Small Business Law
    • Business Contract Basics
    • Civil Suit Defense
    • Legal Issues for Start Ups
    • Trademark Basics
    • How to Incorporate
    • Sale of Business
  • About
    • Reviews
    • Slnlaw Offices
    • slnlaw core values
    • Publications and Interviews
    • New Client Intake and Consultation
    • Contact
  • Attorneys
    • Emily Smith-Lee >
      • 2018 Lawyer of the Year
    • Jenna Ordway
    • Rebecca Rogers
    • Sharleen Tinnin
    • Elijah Bresley
  • Legal FAQs
    • Estate Planning FAQs
    • Probate FAQs
    • Small Business FAQs
    • Wage Act FAQs
    • Commission Pay FAQs
    • Overtime FAQs
    • Independent Contractor FAQs
    • Non Compete FAQs
    • Employment Discrimination FAQs
    • Employment Termination FAQs
    • Massachusettts Unemployment FAQs
    • Severance Package FAQs
    • Medical Leave FAQs
    • Sexual Harassment FAQs
    • Employer FAQs
    • Civil Lawsuit FAQs
  • Blog