Making Beneficiary Designations for Your Estate Plan: Which Beneficiaries Should You Choose?

How to Select a Beneficiary for Your Estate Planning Documents

Was it ever brought to your attention that, if you do not name a beneficiary in your will, the state has the authority to determine who will inherit your estate plan? In order to select who will inherit your property upon your death, it is critical that you seek the advice of an estate planning attorney in Orange County.

Having a comprehensive estate plan is critical; yet, selecting your beneficiaries is a process that is sometimes overlooked or overlooked entirely. It should not be the case in this instance. When you die, your life insurance, pension plans, annuities, IRAs, and other assets should be properly dispersed to the appropriate beneficiaries.

An estate planning attorney in Orange County can assist you in delving into the complexities of selecting the appropriate beneficiary designations and understanding the critical facts and parts of the process.

Who is eligible to be your beneficiary?

Anyone you select can be the beneficiary of your estate. After all, these are your assets, and you have the right to determine who will receive them in the event of your death.

Your beneficiary, on the other hand, must be someone who is still living, and they are not permitted to serve as a witness when you sign your will paper. When you sign your will with an Orange County living trust attorney, you should have someone else present to act as a witness on your behalf.

It is possible that if you are married and have children, you may need to set up a trust so that you can make distributions to them, especially if they are under the age of 18. This is something you can do for your pets as well.

Furthermore, if you live in a community property state, also known as a marital property state, in which your spouse owns 50% of the properties you and your spouse acquired together during your marriage, you may be required to enter into an agreement with your spouse if you choose to name someone else as the beneficiary of your estate plan.

You have the option of naming more than one beneficiary, and those individuals will not be limited to members of your family, friends, or non-related individuals if you do so. You can also designate a business, a charitable organization, or a foundation as your beneficiary.

Designation of Beneficiaries

Please bear in mind that any money you have in a bank or pension account, such as an IRA, may have its own beneficiary designation, which you should consider. To avoid this, you can fill out a beneficiary designation form with the assistance of your trust attorney in Orange County, CA and designate a bank account, Social Security payments, or pension benefits that will be transferred to your selected beneficiary upon your passing.

The Importance of Choosing the Correct Beneficiary for Your Estate Plan

You are the only one who has the authority to decide who will inherit your possessions after your death. Individuals frequently name their spouse, children, a relative or friends as beneficiaries, leaving them an inheritance to ensure that their memories are carried on and, in some cases, to assist them in living a comfortable life after their death.

However, as previously indicated, you can also name an organization or business as the beneficiary of your will. Additionally, you have the option of naming your beneficiary in both directions: you can name many beneficiaries to your estate plan, both as individuals and as nonprofits.

If you intend to name several beneficiaries to your estate plan, you will need to specify how your assets should be distributed in your will or trust. You can leave particular assets to your spouse, such as your house and car, your boat to a child, and the remainder of your wealth to a charitable organization.

Also, you can divide and transfer your estate plan assets based on percentages, such as donating half of your assets to your other half, 20% to your daughter, another 20% to your son, and the remaining 10% to a charitable organization. If you choose to do one of these things, an Orange County estate planning attorney can assist you in making your plans a reality.

Occasionally, if your spouse is not living to get your home and automobile, you can choose a secondary beneficiary for those assets, such as a grandchild or a sibling, to inherit those assets. The process of allocating your assets to the appropriate individuals can become complicated, so you may want to seek the assistance of a trust attorney to draft a strong will that guarantees your beneficiaries receive what you intended.

On your death, you wouldn't want your chosen beneficiaries to get into a battle over who receives what and even contest their decisions in court. This is the primary reason why it is critical to select the proper beneficiary designations for your estate plan in the first place.

With a wide range of services, McKenzie Legal & Financial can assist you in making informed decisions and moving forward. Our financial and estate planning services can assist you in making the most of your life's work while also increasing your retirement savings. Thomas L. McKenzie, a licensed Financial Consultant and a renowned Los Angeles Estate Planning Attorney, works across a broad range of topics to ensure that your ultimate wishes are carried out in the manner in which you desire them to be carried out.