Most all of us have either minor children or grandchildren that we want to bless at our death. The question arises regularly whether they should be named as a beneficiary with life insurance, IRA and Roth accounts, 401(k)’s and 403(b)’s and other accounts that have a beneficiary designation.
Although this week’s article covers IRAs the decision process can be similar.
There are times (and strategies) that make sense to name a minor child as beneficiary. They are not common and should be employed carefully and with the guidance of an attorney or financial professional. If it’s not done correctly there can be unnecessary expenses involved, unexpected delays and in the end may not accomplish what you had originally intended.
When we handle these decisions in the office it’s easy to talk through the options and make an appropriate choice. Beneficiaries should be reviewed regularly. Don’t forget to review the beneficiary forms you’ve filled out at work (maybe for a 401(k), life insurance or other benefits). Completing these in a rush during your initial days at a new job, when everything is a blur, could lead to unintended results. Take a moment to review them now.
To Your Best 2nd Half,
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss.
