What To Know About Beneficiary Planning

When it comes to assets, who would get them if you were to die? This is handled by assigning a beneficiary.  A beneficiary is a person or entity you choose to receive anything that’s left in your retirement account when you pass away. This means if you name a beneficiary, then you make sure your funds and assets go to them if you are no longer living.

There are different types of beneficiaries. A primary beneficiary can be a person, a charitable organization, a trust or an estate. There can be more than one primary beneficiary. The allocations just have to total 100%. Contingent beneficiaries are those who receive your assets if all of your primary beneficiaries are not living. Then there are “per stirpes” designations which are added to the primary beneficiaries. An example of this is if you have an IRA and you have two kids and they are equal beneficiaries per stirpes. If you pass away and one of your kids has three children and passes, then their kids would get their half.

Naming a beneficiary is very important. If you need help, you can always contact professionals in the industry who can direct you in the right path.

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