Step 10

Homework: Who Gets What?

Remember that each beneficiary designation dictates the distribution of each account so make sure all of your beneficiary designations are current. Too often we list someone – then, life changes, people pass away, or relationships change, so your beneficiary designations may need to change too.

1. Consider naming primary and contingent beneficiaries on all accounts and policies. A contingent beneficiary specifies who would receive the account if both you and the primary beneficiary perished in a car accident together, for example.
2. We are usually aware of the need to designate beneficiaries on retirement accounts, life insurance policies and annuities but you should also confirm they are current.
3. You can name beneficiaries on non-retirement accounts, i.e. POD (Payable on Death) on bank accounts and TOD (Transfer on Death) on investment accounts and property.
4. Pets are not usually beneficiaries, but be sure you specify their needs and your wishes with family and in your will/trust.

Beneficiary Designations

• The best person to give you advice on naming beneficiaries is your legal advisor. He/she understands the big picture of your estate and knows what it is you are trying to accomplish.
• Discuss with your attorney the option to add “per stirpes” or “by rights of representation” wording (the ability to include grandchildren if their parents predecease you) to a beneficiary designation.

Too often, people misunderstand and believe that once their will or trust is drafted, that takes care of everything and that beneficiary designations don’t matter because they have it all spelled out in their will or trust. But remember, a beneficiary designation acts like a little mini-will in dictating where each account gets distributed, so the account never references the will or trust for distribution instructions at all on most accounts unless the will or trust is listed as the beneficiary (and that may not be the best practice for tax reasons) or goes through probate because there was no beneficiary listed.

You need to consult your legal advisor for beneficiary designation recommendations – don’t guess!

For more on these chapters and other steps to take before a major life event happens, check out my book the “Before” Financial Checklist: 15 Important Actions to Complete Before the Loss of a Loved One, available on Amazon.

Step 11

The First Month: Miscellaneous “To Dos”

1. Go to the DMV (Department of Motor Vehicles) to cancel driver’s license and transfer vehicle title.
2. Notify the Registrar of Voters.
3. Cancel any medication prescriptions, print subscriptions, and memberships.
4. Delete online personal accounts: email, social media, business sites, etc., to avoid fraud or identity theft. Procedures for each will vary.
5. Send out acknowledgements for cards, donations, etc., if you’ve decided that is something you want to do. This can also be delayed until a time that you are ready and able to tackle this project.
6. Contact the Post Office with forwarding information, if necessary.
7. Cancel all services no longer needed, i.e. phone, internet, cable, etc.