4 Reasons Why Choosing Beneficiaries is a Good Thing

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!

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7 Tips for Making a Will That Benefits Your Children

Did you know 60% of American adults do not have a will? That seems like a significant oversight for a document of such magnitude.

It is the one document that can prevent your estate from falling apart after you pass.

When making a will, there are a few key components to keep in mind. Here are seven tips that will benefit your children. 

Name Your Spouse as Guardian

Sure, this sounds like common sense. If one spouse dies, the other spouse will remain the guardian of the children. However, believe it or not, there have been cases where, when one spouse dies, an outside party makes a play for custody of the children. When this happens, it is up to a judge to decide where the children shall remain.

Name an Alternate Guardian

If the worst case scenario, both parents should die, or you do not have a spouse, you will want to have an alternate guardian in place. Who in your life is well-positioned to care for the children, provide for them, and love them? Think about that and put it down in writing.

Designate a Trustee

After the children’s future guardian is secured, it is time to consider the property. Name a trustee to manage your estate until the children become of legal age.

This person will have full control over the money, real estate, and any assets. So, make sure you trust this person beyond a shadow of a doubt. 

We often see the guardian go on also to become the trustee. But, this is not a hard and fast rule. You will want someone who is fiscally responsible and supremely trustworthy.

Pay Your Trustee

The person you select to guard your property will spend a lot of time and resources handling the estate’s affairs. As such, it might be nice to compensate them for all their efforts. 

This does not have to come in the form of assets through the will. Instead, you can set aside an amount to compensate them.

Each state has a set of provisions in their probate codes, indicating how much a guardian can be paid. Your attorney can guide you on local law. 

Consider a Family Trust

Before you dive into probate law, ask your attorney about a family trust. In some cases, a trust can help your loved ones avoid probate and even save money when it comes to inheritance taxes. Of course, this will depend largely on your unique situation. 

Consider Conditional Gifts

In your will, you can include gifts that come with a prerequisite. This will allow you to rest assured that some of your wishes are being granted before your children inherit the estate. For example, you can condition a gift after the children reach a certain age or graduate college. 

Appraise Your Property

While specific property values fluctuate i.e., homes and cars, you can have other items appraised. Perhaps you have certain antiques or heirlooms. Including these amounts in your court documents allows you to be as specific as possible. 

Making a Will for Your Children

Sure, it is hard to consider a world where you do not exist. But, you can do so much to tie up loose ends and make sure everyone is provided for even after you are gone.

Making a will is not the most straightforward task but, here at Indigo, we put the family back in family law. Contact us today!

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