By Jay Greene, Esq., CPA–
Have you ever counted how many accounts you have? These may include bank accounts, brokerage accounts, insurance policies, 401k, pension, crypto, and more. Do you have all the statements?
The chances are high that you have many accounts, and even higher that those accounts do not have an up-to-date beneficiary designated. Perhaps you want to change a beneficiary designated? What does a beneficiary designated even mean?
Beneficiary Designated
If you have opened a retirement account, then you have probably designated a beneficiary. This is the person who ultimately receives your account funds after you pass away. If you have designated someone, do you still want them to receive everything one day? You may also consider what happens if they pass before you, or if they have already deceased, whom you would name next.
You would need to work with the bank, get the beneficiary’s relevant information, and any other requirements of the institution. This can be stressful for you, and for your beneficiary. It may even be difficult for them to receive the funds later on.
In all likelihood, neither your bank accounts nor investment accounts have a beneficiary option for the account. If you ever sat on hold with a bank, you know they are not the easiest to work with, let alone to convince that you are entitled to someone else’s funds.
Don’t Lose Easy Access to Your Money
Our firm has experienced too many cases of beneficiaries searching for lost bank accounts. “I think there was an account at … ” and, “I saw a statement from … ” are amongst the most used phrases we hear.
The original owner of those accounts worked hard for those funds, and they probably had plans to give it away one day. Failure to identify, designate, and notify by the owner can result in lost funds, money sent to the state, and even frustrated loved ones.
If someone passes away with a Last Will, but doesn’t provide instructions about assets, the beneficiaries may miss out on those assets. This is in addition to the probate that will ensue. Probate occurs even if there is a Will, and it will take an average of at least 9 months to complete and with costs of 5–7% of the total value of the estate.
Whom Do You Choose?
The obvious answer is that choosing someone saves everyone a lot of stress, and money. But whom do you choose, and how do you choose them?
A popular option to plan for your assets is to create a Revocable Living Trust. This Trust allows you to name beneficiaries to all of your assets and easily change them if needed. You will also avoid probate! Best of all, it minimizes stress to you, your loved ones, and ensures your wishes are met.
Your next step is to contact a qualified estate planning attorney for an initial consultation about trusts and beneficiary designations. Our office can be reached by calling our phone number—415-905-0215—or by scanning the QR code in our ad in this paper. Our firm is offering freeinitial assessments with our staff for all estate planning matters! We want you to be prepared, and have a plan that works for your future.
Statements In Compliance with California Rules of Professional Conduct: The materials in this article have been prepared by Jay Greene for educational purposes only and are not legal advice. This information does not create an attorney-client relationship. Individuals should consult with an estate planning and elder law attorney for up-to-date information for their individual plans.
Jay Greene, Esq., CPA, is the founder of Greene Estate, Probate, & Elder Law Firm based in San Francisco, and is focused on helping LGBT individuals, couples, and families plan for their future, protect their assets, and preserve their wealth. The firm, with scheduling available online, can be reached at www.AssetProtectionBayArea.com
Trust Essentials
Published on October 6, 2022
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