Plan your estate against your beneficiary assignments


Your real estate plan is, in your mind, the last word on what should happen to all the assets you own. It gives you the ability to divide your estate between your heirs and other beneficiaries. Doing it the way you want it is very important to you.

However, you also have some accounts with beneficiary designations. These can include retirement accounts, life insurance policies and even some bank accounts. If the nomenclature differs from the estate scheme, who will win?

Labels carry more weight

Contrary to what many people think, your real estate plan will not be honored in such a situation. Beneficiary designations come firstAnd Thus, carrying more weight.

For example, imagine you have a life insurance policy that identifies only one child as the beneficiary. However, you already have three children. Your estate plan says that once the money from the policy is paid into your property, it must be divided in three ways.

Here’s the problem: you’ll never pay on your property. Once you die, the life insurance company tracks the assignment and pays the only child who has been named.

When this happens, money becomes your child’s money, not yours. No matter what you write in your real estate plan, it can’t dictate what to do with someone else’s money. Other children only get the wound if their brother agrees to give it to them.

make them match

This example shows you why it is important to match both domains. Make sure you know exactly what steps to take.



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