GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re able to read more about oureditorial guidelinesand our products and servicesreview methodology.
When he enrolled in his companys retirement plan, he designated his girlfriend as his beneficiary.
Rolisons brothers did contest the former girlfriends right to the account, but the judge ruled in her favor.
If youre unsure, you could be making the same mistake as Rolison.
What Is a Beneficiary Designation?
A beneficiary designation identifies who will get control of your retirement plan and other financial assets when you die.
Many investment accounts allow you to assign both primary and contingent beneficiaries.
Then, the contingent beneficiary will receive your assets.
What Happens to the Account If You Dont Name a Beneficiary?
If you die without designating a beneficiary, a probate court may decide who gets the account.
Probate is the legal process of asset distribution per the terms of your will.
If you have no will, your states intestacy laws will determine how your assets are distributed.
Probate can be a lengthy and potentially costly process for your heirs.
Or you could ping the plan administrator to find out what documentation is required.
Some estate planning professionals recommend checking your beneficiary designations annually.
Like with designated beneficiaries, a TOD or POD designation will supersede your will.
More From GOBankingRates
Share This Article:
