| It is a common error for people to think that | | | | through probate which can be a very long and |
| when a family member passes away, the assets | | | | expensive process involving a judge ruling on the |
| of that family member are given to beneficiaries | | | | assets of the dead person's estate. Also by |
| by way of that person's will. What some people | | | | deciding on a beneficiary at the time, you may |
| do not know is that certain assets including some | | | | help your heirs save on paying a lot of taxes. |
| checking and savings accounts, mutual funds | | | | Other typical beneficiaries could be charities or |
| accounts, one's home and retirement accounts, | | | | trusts in addition to non-family member individuals. |
| may not have to pass through the dead person's | | | | Minor children should not be set up as a |
| will but instead go to the person named on each | | | | beneficiary because their lack of financial |
| account as a beneficiary. | | | | knowledge. In addition, if you add a minor child, |
| A person's will does not always control all of their | | | | you would also need to set up a guardian for the |
| assets when he or she dies. When an account is | | | | minor child to represent his or her interest. This |
| set up or financial assets are deposited into a | | | | could add legal and accounting costs, which are |
| bank, the bank employee will offer the account | | | | unnecessary. |
| holder the opportunity to name a beneficiary for | | | | Finally, make sure to review your list of |
| it in case something happens. However, if no | | | | beneficiaries on an annual basis just to make sure |
| beneficiary is selected, the one person would be | | | | they are current. If relationships change whether |
| the only one who has access to the account. | | | | it be with an individual or an entity, you want to |
| It is sometimes important to add a beneficiary for | | | | ensure that your assets go to the right place. |
| an asset since the asset is not required to go | | | | |