Designate a beneficiary for your investment accounts

Thu Sep 3, 2009, 6:28 AM | | Posted in Finances Invest



Now that you have written out your will, and have appointed a power of attorney to act on your behalf, next task to perform is to designate a beneficiary for investment accounts.

You can do so for all your different accounts such as:

• Retirement accounts such as IRAs, Roth IRAs, and SIMPLE IRAs

  Assets in your retirement accounts pass directly to the beneficiaries you have designated with your account custodian, trustee, or plan administrator.

• Employer-sponsored retirement plans

  If you are married, keep in mind that most employer-sponsored retirement plans automatically designate your spouse as the beneficiary unless you name another beneficiary(ies) and your spouse has consented in writing.

Keep in mind that your beneficiary designations can supersede any accommodation you have made in your will for your retirement accounts.

• Non-retirement accounts

  Designating a beneficiary on a non-retirement account, such as a brokerage account, may establish a “transfer-on-death” (TOD) registration for the account.

In a Nutshell
As with all accounts, estate taxes may still apply. Be sure to consult your tax adviser.

What do you think?

You might also like...

• Be aware of the principle of the “operation of law”
• Managing your finances after your spouse passes away
• Revisit your investment portfolio for retirement
• Appoint Power Of Attorney To Act On Your Behalf
• Tips To Reduce The Number Of Brokerage Accounts

Information contained herein is general in nature, and is provided for informational and educational purposes only. Past performance is no guarantee of future results. Talk to your financial adviser.

Read more articles in Finances Invest

• Please Support This Blog

Older Post:

Newer Post: