The COVID-19 pandemic led many individuals to take action on their
estate plans—either by creating a will for the first time or updating an existing one. This shift was a step in the right direction. Dying without a will, known as dying intestate, means that Ohio law will determine how to divide your assets, which can create unnecessary complications for your loved ones.
However, even with a will in place, there’s another critical piece of the puzzle: your
beneficiary designations.
Beneficiary Designations Override Your Will
Many people don’t realize that the beneficiaries named on certain accounts—like retirement plans, life insurance policies, bank accounts, and investment accounts—supersede
what’s written in your will. This means that even if your will says one thing, these accounts will go to the person listed on the form, regardless of how long ago it was completed.
That’s why it’s essential to regularly review and update your beneficiary designations, especially after major life events such as marriage, divorce, the birth of a child, or the death of a loved one. Even a change in address or name should prompt a review to ensure everything remains accurate and aligned with your intentions.
Consider Charitable Beneficiaries
In some cases, naming a nonprofit or charitable organization as a beneficiary can be a thoughtful and tax-efficient option. Because charities are tax-exempt, they can receive retirement assets without the income tax burden an individual might face. If you choose this route, be sure to list the organization's full legal name to avoid confusion.
Keep Your Estate Plan Current
Ultimately, you are responsible for updating your beneficiary designations. Make it a habit to revisit your estate plan—including these designations—every few years.
If you need assistance or have questions, the estate planning attorneys at Hoover Kacyon, LLC are here to help guide you through the process with clarity and care.
We deliver the highest quality legal representation from a team of professionals while also providing excellent customer service. Call us at
330-922-4491
or
contact us
online to make an appointment.
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