Choosing the right beneficiary

New Jersey residents should be aware of the importance of keeping their beneficiary designations up to date and making th right choice. There are a number of assets that are passed on using a beneficiary designation including retirement accounts and life insurance.

A number of people do not think very hard about who they choose as their beneficiary, or they think about it once and do not think about it again. As a result, they might choose the wrong beneficiary or they might fail to change the beneficiary as needed. For example, a person might name a minor child, and this could cause problems if the child cannot legally inherit the asset. A person who does not regularly review beneficiary designations might forget to change them after a divorce or if the beneficiary dies.

Many people may name a spouse first and then adult children as beneficiaries. People can also name a charity if they wish. It is possible to make a trust a beneficiary, but a person might want to look into the tax implications.

Beneficiary designations are only one aspect of estate planning. People should also consider creating a will and possibly a trust although they should keep in mind that beneficiary designations override wills. They might want to discuss their situation with an attorney because there might be a number of options they are unaware of. For example, many people think that trusts are for wealthy families, but trusts can have many uses. For example, they can be a way to help support a relative with special needs who might receive governmental help without jeopardizing those benefits. Living wills and powers of attorney may also be important estate planning documents.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How We Can Help You?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Lanza & Lanza LLP

Lanza & Lanza LLP
5 Main Street
Flemington, NJ 08822

Phone: 908-905-0183
Fax: 908-782-4012
Flemington Law Office Map

Phone Numbers:

Review Us