Beneficiary designations allow anybody with life insurance, a retirement account, or other assets to name the person they want to give these to upon passing. Beneficiaries are often family members, but some people choose to have the account balance go to a charity or trust. If you’re getting your affairs in order, talk to an attorney about beneficiary designations so that you understand the process.

What to Know About Beneficiary Designations

How do beneficiary designations and wills differ?

The grantor is the person who decides who gets what after their passing. If you’re the grantor, you’ll need to designate someone as a beneficiary whenever you set up an asset, like a retirement account. A will is a document that’s created with an attorney, and it’ll include instructions that dictate what happens to the grantor’s assets.

Upon passing, a grantor’s estate may go into probate, which is a costly legal process that verifies a will. To avoid extended time in probate, work with an attorney to ensure the beneficiary designations and will don’t contradict each other.

How does a beneficiary make a claim?

When the grantor passes, the beneficiary can procure their inheritance by submitting a claim form. The form will be provided by whoever is managing the assets, such as an insurance company.

Along with the form, the beneficiary will need to submit a copy of the death certificate, which will be supplied by the state or county where the deceased person lived. If you’re a beneficiary but aren’t aware of it, you’ll be notified by the will executor, which is the person carrying out the terms of the will.

Can there be more than one beneficiary?

It’s possible to name multiple primary beneficiaries. The estate or asset will be split between the named recipients in proportions decided by the grantor. Secondary or contingent beneficiaries can also be named to inherit assets if a primary recipient can’t. For example, a secondary beneficiary will be included in the distribution of assets if a primary beneficiary passed before the grantor.

Can minor children be beneficiaries?

Children can be named as beneficiaries when you create a financial account. If they’re a minor when the grantor passes, an adult guardian will oversee the funds until they come of age. If the grantor hasn’t named a guardian, the court will appoint someone they deem appropriate for the role.

If you have more questions regarding beneficiary designations, contact the Law Office of Dawn N. Murata LLLC in Lihue, Hawaii. Attorney Murata has over 20 years of experience in estate planning, wills, and trusts. She and her team will work closely with you to ensure your affairs are in order and followed after you pass. Learn more about this law firm’s services online, or call (808) 245-4572 to request a consultation.