You’re faced with a variety of challenging and important decisions when creating an estate plan. Among them is deciding who to name as your beneficiary.
Even if it sounds simple and straightforward, the more you think about it the more you’ll realize that you have multiple options to consider.
Here are some important points that you can’t afford to overlook:
- You need to name a beneficiary on day one: You don’t have a complete estate plan if you’ve yet to name a beneficiary. As you create your will, it’s a must to make a final decision in regards to this detail.
- The state could take over: If you neglect to name a beneficiary or create an estate plan at all, the state is likely to decide who gets what upon your death. This can result in your assets ending up in the wrong hands.
- You can name multiple beneficiaries: For example, if you have more than one child you want to name as a beneficiary, you can do so to ensure that your estate is split accordingly.
Naming a beneficiary is critical to the overall health of your estate plan, as this is the person (or people) who is in line to receive your assets.
If you’re on the fence as to whom you should name as your beneficiary or beneficiaries, take a step back to consider all your options. You don’t want to rush and assume that you’ll have time to make changes in the future, as you never know what tomorrow will bring. When you make this decision, you need to be sure that it’s the right one.