Who Should Be My Beneficiary?
When it comes to writing your Will, arguably the most critical aspect is naming your beneficiaries. These are the people or organizations who will get your assets in the event of your death. It’s important to think long and hard about who should be your beneficiary. Because once you have passed, you don’t get to change your mind.
As the benefactor, you can leave your assets to just one beneficiary or up to as many as you would like. The concept of beneficiaries and choosing them can be confusing, so our estate planning team at Rilus Law has broken it down to help you choose your beneficiaries with confidence.
What is a Beneficiary?
A beneficiary is any person or organization named in legal documents, like a Will or life insurance policy, who will receive a portion of your assets after you have passed away. Many people think that a beneficiary has to be a relative, but in actuality, it can be anyone you want. You can name just one beneficiary or as many as you like.
These are some examples of who you, as the benefactor, could name as your beneficiary:
A minor (anyone under 18 years old)
An adult
The successor trustee of your Revocable Trust
A charity or nonprofit
When deciding who to name as your beneficiaries and which assets to leave them with, you must be as specific as possible to avoid confusion. Your estate planning attorney can help walk you through this process.
Why Do I Need a Beneficiary?
The main reason to name a beneficiary is to control the distribution of your assets after your death. You’ve undoubtedly worked hard throughout your life to acquire your assets, so it would be a shame to let the courts decide what to do with them rather than designating your wishes in your Will.
Not convinced yet? Here are some more reasons why you need a beneficiary:
It makes your wishes perfectly clear to your loved ones.
It speeds up the legal process and helps your family avoid probate court.
It allows you to leave this world with peace of mind knowing that your family will be taken care of after you die.
Naming beneficiaries not only allows you to maintain control over your assets, but it also makes things a lot easier for your loved ones, who will already be going through an extraordinarily difficult time after you pass.
Who Should Be My Beneficiary?
For those with families, most people name their spouse and/or children as their beneficiaries. However, your beneficiaries could be anyone in the world, from close friends and extended relatives to business partners. When making this important decision, think about the people who depend on you financially and how you want to divide your assets among them.
These are some of the most common choices for beneficiaries:
Your spouse
Your children
Other family members
Close friends
Business partner(s)
Charity or nonprofit
If you aren’t quite sure who you should name as your beneficiary, discuss your options with your lawyer. If you’re working with an experienced estate planning attorney, they have been through the process many times before and can provide you with thoughtful guidance.
Estate Planning Attorneys in Arizona
The estate planning process can be lengthy and confusing without the right attorney. It’s essential to find a skilled and experienced attorney who specializes in estate planning to make the process as stress-free as possible.
At Rilus Law, we work closely with you every step of the way to ensure that the process runs smoothly and that your estate plan is personalized based on your specific needs. Contact us today to schedule a consultation with one of the top estate planning attorneys in Arizona!