Personal Property
6 min read
Heirs vs. Beneficiaries: Who Inherits a Loved One's Estate?
The distinction between an heir and a beneficiary is particularly important because they may receive estate assets in different ways.
Personal Property
Avoid a Potential Estate Planning Catastrophe
Get the legal advice you need without the hourly legal fees
Many people assume all of their bank accounts, investments and insurance policies will be distributed according to their Last Will and Testament, but this may not be the case. These types of accounts, including checking accounts, life insurance, retirement portfolios and IRAs, often require a beneficiary designation when they are established.
The individual(s) you name at that time will receive the funds from the account when you die. These accounts are considered “payable on death,” meaning the assets transfer at the time of your death without regard to your Will.
In some cases, forgetting to update the beneficiary designation could mean your wishes and the reality of how your assets are distributed will differ greatly. Accounts may have been established prior to marriage, the birth of children or even during a previous marriage. This means your children or your current spouse would not receive assets from the account when you die.
It's important to act quickly. Beneficiary designations can only be altered while you are living and of sound mind. You may want to change the beneficiary designation to a particular family member or a current spouse. You may prefer to designate your estate as the beneficiary so the assets will be distributed according to your Will.
Deciding how to handle any accounts with a beneficiary designation is an important part of the estate planning process. Talk to your LegalShield provider law firm to learn more about your options.
Get the Answers You Need, When You Need Them
Related articles
Personal Property
6 min read
What Is a Postnuptial Agreement, and How Does It Work?
For many spouses, a postnup is simply about preventing confusion and making shared decisions before money questions get harder to discuss.
Personal Property
6 min read
What Are House Deeds, and How Do I Get Mine?
You might need your deed when you’re selling your home, adding a spouse to the deed, checking ownership, or trying to settle estate questions.
Personal Property
5 min read
Per Stirpes vs. Per Capita: Choosing how your estate gets distributed
The difference between "per stirpes" and "per capita" can be confusing. They sound alike and both have to do with who inherits your assets if a named beneficiary dies. We'll explain the difference.
Personal Property
6 min read
How to Sign as a Power of Attorney Agent to Represent a Loved One
Signing as a POA Agent is more than just jotting down your signature. Banks, title companies, healthcare providers, and similar entities might reject documents if the signature doesn’t clearly show that you’re signing for the other person.
Personal Property
5 min read
How to Avoid Probate With Thoughtful Estate Planning
Probate can take time, add costs, and create extra work for loved ones during an already difficult time. That’s why people often want to know how to avoid it.
