Having a family is one of life’s greatest joys. There is so much to look forward to — graduation, marriage, grandkids. Of course, these things require a lot of financial planning like 529 savings plans for college, or trust funds.
One thing we hate to think about, however, is how to plan for our loved ones’ financial well-being when we pass on. One of the ways you can make sure that your loved ones are taken care of is to set up beneficiaries for things such as life insurance and your estate.
Want to learn more about choosing beneficiaries? We have got you covered. Read on to learn about the reasons for selecting beneficiaries!
It Gives You More Control
You have control over your financial assets now, why would you not want control over their distribution when you pass on?
If you pass without having a will or beneficiaries set up, then it is ultimately up to your next of kin to decide how to divide up your assets. In the event that there is a dispute over who should get what, then it will be up to a judge to make that decision.
Choosing beneficiaries now ensures that you are in complete control of your assets.
Choosing Beneficiaries Makes Distribution of Assets Less Stressful
We want to think that our family will be able to divide up assets in a civil manner. Unfortunately, that is not always the case. The stress of the loss of a family member and dividing up their assets can do a lot of damage to relationships.
By pre-planning who gets what, your loved ones can avoid the stress and hurt feelings of dividing up your assets.
Your Beneficiaries Can Avoid a Lengthy Probate Process
Probate is a notoriously long process by which the executor or administrator of the estate manages the assets of the estate to make sure that all assets are collected, debts are paid, and all property is distributed. Probate is more complicated when there is not a will, or an existing will needs verification.
Not all property must go through probate. Most states will allow a certain amount of your estate to get passed on to your loved ones without going through probate first. Life insurance policy payouts can bypass the probate process entirely so long as there are designated beneficiaries.
Peace of Mind
If nothing else, setting up beneficiaries will give you the peace of mind that you have done everything that you can to make sure your loved ones will continue to prosper, even if you pass.
Estate planning may not be a fun thing to think about, but it is still incredibly important if you want your loved ones to enjoy financial stability after you pass on. When it comes to estate planning, it is never too soon to get started.
Ready to Set Up Your Beneficiaries?
Choosing beneficiaries for your estate and insurance is an incredibly important step in planning for your family after you pass on. Not only does it give you control of who gets what portion of your policies and estate, but it also prevents tension among family members.
Ready to start planning for your family and loved ones after you pass on? We can help guide you through the process. Contact us today to see how we can help you!