Below is a list of common financial products, accounts, and items to keep in mind when doing a beneficiary review as well as client messaging to go with each item. You can also provide your clients with our Beneficiary Information Workbook (catalog #103450) or our Emergency Contact Information (catalog #103451) document, now both available in a digital format.
Wills and Trusts
- Client message: If you already have a will and/or trust in place, you’re doing great! But don’t forget that you’ll need to update both as your life changes. If you don’t have a will, make it a goal to put one in place. The best way to take care of your loved ones after your gone, to leave behind an organized inheritance.
The Usual Suspects
Individual and Company Sponsored Retirement Plans
- Client message: If you have an individual retirement plan, such as a traditional or Roth IRA, or a company-sponsored retirement plan, such as a 401k, chances are that you were asked to name a beneficiary when you established the plan. That being said, it’s important to confirm that you actually completed that part of the process and that the beneficiary you named is still accurate – think of common accidental oversights like “Did I skip that part because I didn’t have a social security number for that person at the time?”
Also, keep in mind that if your 401k carrier changes, or you move your Roth IRA to a different company, your beneficiaries will not migrate with that change. A retirement wellness best practice is to review your beneficiaries annually!
Insurance
- Client message: Insurance is another important area of beneficiary planning, especially life insurance. For many families, life insurance proceeds after the death of a loved one are what determines whether a family can maintain their current lifestyle. For instance, a death benefit can help a family stay in their home, ensure a child is able to attend college, or keep a retirement goal for a surviving spouse on track. Reviewing both the ownership and beneficiaries of insurance policies annually will help ensure that your insurance benefits and those your trying to protect evolve to continue to meet the needs of your every changing life.
And Don’t Forget…
Investment Accounts and Bank Accounts
- Client message: If you were unable, is there anyone who can pay bills on your behalf? Keep the household running? Reviewing ownership/beneficiary options for these types of accounts is important.
Annuities
- Client message: If you own an annuity, it’s likely that you purchased it for the guaranteed income it can provide. Most annuities include beneficiary options – make sure you made a sound choice for you and your family. And, as life changes, make sure the beneficiary you have designated still makes the most sense for your and your family’s needs.
Stocks, Bonds, and Other Investments
- Client message: It’s important to understand how these financial products can be passed on to your beneficiaries, so let’s talk about your options.
Personal Property
- Client message: You may want to leave your home to your kids, but are they ready for it, and do they want it? Inheriting property comes with responsibilities and expenses that your beneficiary may not be equipped to handle. Let’s talk about your concerns and options for you and your family to discuss and consider.
Client message: Do you want your great grandmother’s locket to go to your daughter? Did you realize that you can include specific items in your will? It’s a great way to ensure that your wishes are carried out – talk to your attorney today about adding that level of detail to your will.
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