Avoid Costly Mistakes: Keep Your Beneficiary Information Up to Date

Keeping beneficiary information up-to-date, is an important part of financial planning. As life changes, so too should your list of beneficiaries be reviewed and possibly changed, to ensure your assets are distributed according to what you want. This is why updating beneficiary information is essential. Read on and see how My Banyan can simplify this process for you.

What Is a Beneficiary?

A beneficiary is an entity or someone you have chosen to receive the balance of your assets from your accounts upon your death. You can name a beneficiary for various financial accounts and investments, including:

·     Last Will and Testament

·     Living Trust

·     Life Insurance Policies

·     Retirement Accounts

·     Investment Accounts

·     Company Benefits Plans

·     Bank Accounts

·     Pensions

·     Veterans’ Benefits

Selecting the right beneficiaries and keeping this information up to date, ensures that your assets are passed on as you intend.

Why You Need to Keep Beneficiary Information Updated

1. Life Events: Major life changes such as marriage, divorce, the birth of a child, or the death of a loved one are critical times to review and update your beneficiary designations. Failing to update your beneficiaries can result in unintended consequences, such as an ex-spouse inheriting your assets.

2. Changes in Relationships: Over time, your relationships may evolve. You may want to include new family members or exclude those who are no longer part of your life.

3. Charitable Intentions: If you have designated a charity or trust as a beneficiary, periodic reviews are necessary to ensure they still align with your current values and intentions.

4. Legal and Financial Changes: Changes in laws or the structure of your financial portfolio can affect how your assets are distributed. Keeping your beneficiary information current helps navigate these changes smoothly.

Managing Beneficiary Information with My Banyan

At My Banyan, we understand the importance of keeping your financial and beneficiary information organized and accessible. Our platform allows you to record and update beneficiary information across various account types:

·     401(k) Plans

·     529 Savings Plans

·     IRA Accounts

·     Health Savings Accounts (HSAs)

·     And many others

In the Finances Branch and Investments sections, you can add records of your accounts, set the ownership type (trust, joint, individual, etc.), and list your beneficiaries. My Banyan also supports more complex investments that require management by a financial advisor, such as portfolios, alongside simpler investments like Certificates of Deposit (CDs) and IRAs.

Steps to Update Beneficiary Information:

·     Gather Statements: Have recent statements from all your investment accounts handy. This helps in accurately updating your beneficiary information.

·     Log into My Banyan: Use the platform to input or update your beneficiary details. My Banyan offers fields to specify primary and contingent beneficiaries, ensuring that your wishes are clearly recorded.

·     Regular Reviews: Set reminders to review your beneficiary information annually or after significant life events. This proactive approach prevents outdated designations from affecting your legacy.

Additional Tips

·     Include Checking and Savings Accounts: Don't overlook these accounts when designating beneficiaries.

·     Maintain Hard Copies: If all your files are electronic, keep a hard copy of your beneficiary information in a safe place. You can record the location in My Banyan for easy reference.

Regularly updating your beneficiary information is a small task with significant consequences. It ensures your assets go where you want them to and minimizes the potential for disputes or tax issues. My Banyan provides a user-friendly platform to manage this vital aspect of your financial planning, giving you peace of mind that your legacy is secure.

Stay proactive, review your designations, and use My Banyan to keep your financial plans on track. If you haven't tried My Banyan yet, you can now try it for FREE by clicking here.