Who should I choose as my Beneficiary?

Answer:
Choosing a beneficiary when dealing with bank

accounts, life insurance, and other financial products may seem like a no-brainer but it’s not always easy. While naming a spouse or partner makes the most sense, what if you’re not in a stable, committed relationship?

An advantage to naming beneficiaries is that the funds do not go into your estate when you die. Instead they go directly to the named individual and they are not subject to the claims of creditors.

So who will you choose? A spouse, partner, parent, sibling, or child? This decision is yours to make however you shouldn’t simply name a beneficiary and forget about it. Years from now, your financial products could have beneficiaries who are no longer appropriate. For example, what if you named your significant other (at the time) a beneficiary of a life insurance policy and later broke up? If you don’t change the beneficiary, the ex will get the proceeds – not your current spouse or children.

Further, when naming minor children as beneficiaries, consider appointing a trustee to receive and manage the proceeds on your child’s behalf.


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