Beneficiary forms are critical because they map out who will receive your assets after you depart. Establishing that your form is correct and up-to-date is vital to make sure your assets fall into the right hands. Find out four common mistakes people make with their beneficiary forms so you can avoid the ramifications that come with it.
0:15 “Each year that you age, that required minimum distribution increases, increases, increases until you die”
0:24 “When it comes to your beneficiary, this is one of the most important forms in your overall financial plan because one of the largest assets that we see that you own is your retirement account”
0:40 “If you have a 403(b) or an IRA, sometimes you might have an incorrect spouse”
0:55 “Maybe you’re divorced, but you didn’t change it to the kids, so you want to make sure that you have the right beneficiary”
1:02 “Or, if you don’t have any beneficiary at all, it will go to the estate, and that’s not very favorable when it comes to taxes, because an IRA or any other retirement account is a different type of animal; it doesn’t pass through your estate plan, it doesn’t pass through a will or a trust, everything will go to whoever you name as your beneficiary, so that beneficiary form is really, really important”
