Who Will Inherit Your Legacy?
Having a will or trust does not guarantee that your beneficiaries will inherit what you have intended for them. That is because your beneficiary designations on certain types of financial assets—including life insurance, retirement plans, and various other accounts—override the plan you have created.
Did you know that you must designate your beneficiaries for all your federal benefits to ensure that your assets will be distributed correctly?
The basic designations to check for your federal benefits are your Federal Group Life Insurance (FEGLI), Federal Employee Retirement System (FERS), Civil Service Retirement System (CSRS), Thrift Savings Plan (TSP), and any unpaid compensation. In addition to these designations you will also want to ensure that your private assets such as retirement accounts, investment accounts, life insurance policies and other financial accounts have the correct beneficiary designations. You can find links to the forms needed to update your beneficiaries for your federal benefits listed below.
Beneficiary Designation Forms for Federal Benefits:
Think About It!
In the event of your death, the beneficiaries you’ve named for those accounts will be legally entitled to receive the assets, regardless of what your will or trust documents say. Bottom line: If you’re not diligent in updating your beneficiaries, your loved ones may be in for a big surprise in the event of your death. Designations often become outdated and may need to be changed due to certain life events such as marriage, divorce, birth of children, death of parents, etc.
How Can I Avoid This?
Any time there is a major life event, make checking your beneficiaries a priority. Set a date every year to review all your accounts. Making sure that you have your beneficiary designation forms updated and current will ensure you are prepared in case of something unexpected and will ensure that your assets will be distributed according to your wishes.
-Written By: Tammy Fisher
If you would like to have one of our trained representative assist you with designating your beneficiaries or with any other questions you may have please submit the form below or call us at 866-558-2121!