A series of helpful financial tips and advice for everyday Americans dealing with death and dying.
GETTING STARTED
Making final arrangements and dealing with the affairs of a recently deceased loved one can be very hard and over whelming. Most Americans whom are at this stage often feel alone and encounter others whom “just dont get it”. This blog is designed to help family and friends avoid some of the major pitfalls.
What is a beneficiary? It is someone that is chosen to receive benefits, property or assets in the event the loved one of those assets, passes away. When discussing this with your loved one, consider the reasons why a beneficiary is needed.
Are they looking to;
1) Assign assets quickly and easily to help pay for final expenses.
2) Give money and help to a loved one or
3) Simply transfer the wealth and avoid the lawyers and probate court. Or,
4) do all the above.
If so, ask your loved one to consider adding a beneficiary to the most common accounts. These are, Life Insurance Policies, Bank Accounts, Brokerage Accounts, Annuities, HSA’s, Retirement Accounts and in some cases Social Security Disability benefits.
KEEP IT SIMPLE
State and Local Probate processes can often take 3 months to 5 years to finalize. Yet, your loved one can’t really wait too long to move to their final resting place. Keep it simple and discuss whom would be the best person to add to these accounts.
They should consider a Primary Beneficiary and a Contingent Beneficiary. Primary means 1st choice and is the person that is most trusted. While contingent could be an organization, institution or 2nd choice in the event that the primary is no longer living, does not qualify or cannot be located.
There should be always 2 as a best practice. One could have more, but try to keep it simple
DID YOU KNOW?
Did you know that accounts with a beneficiary assigned do not need to be added to a Final Will & Testament? No need to add up legal fees, it’s easy and can be a DIY task.
Investment firms, banks and financial institutions are not obligated to notify anyone in the event of death. So, make sure that your loved one provides key phone and account numbers to the person that matters most.
If no beneficiary is chosen, it can fall on the financial institution to make the decision on who should receive the assets, how and when the assets are to be transferred and the amount. Don’t leave it to strangers. Have a discussion today!
Last, most institutions will not distribute funds to minors and monies could end up in a state run trust! Be sure your loved one chooses carefully
TO LEARN MORE INFORMATION
Visit www.wealthactionplanners.com and make an appointment. Or call 404-343-8561 to speak with a licensed professional.
Wealth Action Planners is an American financial services company based in Atlanta, Georgia. The company provides Life Insurance products, financial planning & business consulting to Business Owners, Corporate Leaders, Educators, Gen-X’ers, Millennials and Philanthropists. The company is a registered insurance broker in Florida, Georgia, South Carolina and Texas.
