What is a beneficiary, and who can be one?

When you want to pass your assets and other belongings onto someone else after you die, you decide on what is called a beneficiary. A beneficiary is someone you name in legal documents, such as a will or trust, life insurance policy, bank accounts, and even retirement accounts like IRAs and a 401(k). Choosing a beneficiary is an important decision, as it ensures everything you own gets into the right hands, and everyone you love is protected as they move forward without you.

You can name more than one beneficiary, and though most people choose family members, it is perfectly acceptable to choose someone else if it makes sense for your particular situation.

Example beneficiaries can include:

  • Your spouse
  • Any children you may have
  • A minor other than your children
  • Your parents and grandparents
  • Your siblings
  • Any cousins or other relatives
  • Your estate
  • The trustee of a trust you’ve set up
  • A charity or nonprofit
  • A close, personal friend

It may be surprising that you have so many options when it comes to naming primary and contingent beneficiaries. But that’s the beauty of having your wishes carried out the right way.

Take, for example, Jane. She was 62, widowed, and the mother of six grown children when she passed away. In her will, she listed all of her children as an equal beneficiary of her estate. The only exception was an old grandfather clock, which she wanted her brother, Fred, to inherit. Because she spelled out exactly who would receive those items, there were no questions, no hurt feelings, and no arguments among her surviving family and friends. Her wishes were followed, and the right beneficiaries were taken care of moving forward.

Call Nelson Law Group today!!

When it comes to estate planning and naming a beneficiary, you need a trusted estate planning attorney to guide you through each stage and work diligently to achieve a result that will give you peace of mind moving forward. The Nelson Law Group brings nearly two decades of experience in estate planning to each and every case.

Give our knowledgeable staff here at Nelson Law Group, PC, a call if you have any further questions regarding this or any other issue. Our staff is always available. Give us a call today! For more information about Brett A Nelson, click here.

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Source: Nelson Law Group

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