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Choosing beneficiaries for an estate plan

On Behalf of | Dec 9, 2020 | Estate Planning

When people get to the part of their estate plan where they need to select beneficiaries, they may feel pressure to include everyone. While there is not a limit to the number of beneficiaries a person can choose, knowing their options can help them to make informed and confident decisions.

Beneficiaries can also contribute to planning a person’s estate, especially in family relationships. This strategy may reduce disagreements about the outcome of an estate because everyone knows what to anticipate.

Beneficiary options

People can choose just about anyone to share their assets with. According to Fidelity, depending on who people choose to benefit from their assets, different rules and regulations will apply. Their effort to learn about their state’s laws can help them plan accordingly and avoid disappointment. Some of their options for beneficiaries include the following:

  • Grandchildren
  • Charities
  • A spouse
  • Children
  • Close friends
  • Distant relatives

Updates and modifications

Over time and as people experience life changes, they may need to modify their list of beneficiaries. MSN suggests that beneficiary structure is easily impacted by familial changes. The same goes for an estate plan.

Changes including death, divorce, marriage, remarriage, the birth of children and even adoption may all create a need for updates to listed beneficiaries. Additionally, if people experience familial strife and choose to cut off relationships, previously listed beneficiaries may no longer have rights to an estate plan. As soon as people realize the need for modification, they should promptly address their concerns. They may need to have certain documents formally notarized again to guarantee the legality of the changes.