In this short video, Joe and Al discuss five of the most common mistakes people make with their IRA (individual retirement account) beneficiary forms. Find out why naming the trust as the beneficiary of your retirement account is not the best idea. Feel rest assured that your legacy remains intact and is handed down to the right people after you pass.
Important Points:
0:04 “Some of this seems logical but we’re seeing these mistakes over and over again like for example: some of you have IRAs or 401(k)s where you don’t even have a beneficiary form on file”
0:26 “How about if it’s an outdated form? You have your prior spouse on there…guess what? That spouse is going to receive your IRA or 401(k) unless you change the beneficiary statement”
1:36 “Here’s the biggest one – naming the trust as the beneficiary. Huge, huge mistake because a trust is an entity – not a human being. It doesn’t have a life expectancy”
2:11 “In most cases, people do not understand the complexity of naming a trust as the beneficiary on their retirement account”
2:19 “In all cases, name your spouse first if you’re married or the people you want it to go to and at the very end of your long list of beneficiaries, then you can name the trust”
