When it comes to estate planning, a will or a trust often receives the most attention. However, the simple act of naming a beneficiary to inherit assets in your 401(k), IRA, or savings account, or the proceeds of a life insurance policy or annuity, is a powerful estate planning tool.
“Some folks minimize the importance of a beneficiary designation,” said Rachelle Tubongbanua, a private wealth advisor and managing director at U.S. Bank.
But that’s an estate planning mistake.
Choosing and properly designating a beneficiary is a key step in making sure your assets go to the person or people you want them to go to. A beneficiary is the person or entity who will get your assets when you die.
It’s not a game of
Choose a Beneficiary for Your Estate Plan: It’s Not ‘Duck, Duck, Goose’
