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How should you determine who to name as beneficiaries?

| May 10, 2021 | estate planning | 0 comments

Naming beneficiaries to inherit your assets can take time and a lot of thought. Because you have worked hard for what you have, you desire to leave your fortune with people who will appreciate it and find purposeful ways to use it.

Knowing some factors to consider when selecting people as beneficiaries can help you to make confident decisions.

Age and maturity

You can name anyone as a beneficiary including your friends, children or grandchildren. In fact, you may choose to leave all of your money to a charity that supports a cause you feel passionate about. However, when choosing beneficiaries, take into account a person’s age and maturity. If under 18, you may need to complete some extra steps to define when and how to access the inheritance.

As a rule of thumb, use caution when giving your inheritance to people who have not shown responsible behavior in the past. One of the benefits of planning your estate is that you can have some control over how beneficiaries’ access and use their inheritance when you specify your expectations. According to MSN.com, you will need contact information, a social security number and a full legal name for everyone you name as a beneficiary.

Relationship status

When choosing people to inherit your fortune, consider their relationship with you and your family. Throughout your life, the way you feel about people may change. If you get divorced or remarried or if relationships change, you may want to update your beneficiaries.

You may find that discussing your intentions with the people you name as beneficiaries encourages unity and provides clarity and understanding. When everyone knows how you feel and why you made the decisions you did, they can respect your wishes, respect each other and carry on your legacy together.