inheritance beneficiary annuity life insurance

The selection of your beneficiaries needs to be done with some caution.

Just saying that “everything goes to the kid’s“, 
really is not a good idea. 

Not all families or heirs are the same.   

While you may want to give everything to the children,  Some forethought may be needed.  For most families, this is very simple and equitable to do.  

Do you want to provide for a Charity or other organization?

The first Beneficiary is normally the surviving spouse.   That’s easy.


The Children

When giving to the Children, it can become complicated.  Children and their families can make a difference. 

You will have both Primary and Contingent Beneficiaries.

The Primary (s) are self explanatory. They would be for example the 3 children ( Ronald, Mary, Judith).  The Contingents would be maybe their children or back to the primaries.

Designate the beneficiary by name.  By saying ” The Children of” can eliminate an adopted child.  Be Careful.


Changes that occur

Nationally, we have a 50% divorce rate.  Spouses pass away.  Children lose financial control of themselves or they make a lot of money.  Etc, Etc.

The point is that our lives change.  If you have Beneficiaries and a change occurs,  you may need to update the records. 


Case Study:  Divorced and remarried Husband dies.  Ex wife is still the beneficiary.  The Ex Wife received the proceeds of the life insurance.  The current wife loses.

A simple oversight can be devastating in such a situation.


Tax Law Changes

The rules of handling of Qualified Money.  Such as an IRA or 401K has changed.  Old rules are out unless they are currently paying out.  Future distributions have changed.

The Stretch IRA is basically gone.  Any Qualtified monies are to be distributed by the end of 10 years, following the death of the owner.   

CONTACT US regarding this matter and how to protect your interests.


Things to consider when dividing your assets.

Tax implications of what is being passed.

Do the children (Heirs) have different financial needs.

Is one irresponsible?

Any Disabled on any Gov’t Assistance?


This is but a sampling of the questions that need to be asked when selecting beneficiaries.  What you select “today” will prevent any family infighting after your passing.   And sadly, it occurs more often than you might think.  Plan today for having  your assets passed as you wish. 



Contact us regarding Beneficiaries.  


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