How do you decide who to name as beneficiaries?

On Behalf of | Mar 15, 2022 | Estate Planning

Beneficiary designations can influence the closure of your estate more than you may realize. Being selective in how you choose your beneficiaries can give you the reassurance that your legacy is in good hands.

Answering some questions can help you determine who would most benefit from a portion of your estate.

Consider relationships

Depending on the relationships in your life, some people may be an obvious, natural choice to name as a beneficiary. For example, if you have a spouse or partner, this person may be your first choice to inherit all of your assets if something happens to you. According to U.S. News, you can also consider naming contingent beneficiaries who can inherit your estate if something happens to your primary beneficiary.

Which relationships mean the most to you? Which people would honorably carry your legacy? Are there any charities that you feel deeply about? Do you want to contribute to any educational initiatives or scholarships? Answering these questions can help you identify potential beneficiaries.

Consider needs

Another angle you may consider is the needs of those you care about. Do you have dependents? Who will need to finance your death and the closure of your estate? Are there people who will benefit from extra money after your death? Are you responsible for the well-being of a disabled person?

Thinking carefully about the needs of the people in your life that you are closest to can help you make meaningful decisions. An attorney can help you write your estate plan and designate heirs. Over time, you may need to update or remove beneficiaries as your life changes.