Who Should (Legally) Get What You Leave Behind?

As a member of the IAM Legal and Personal Protection Plan, you have a valuable benefit: a lawyer can prepare a simple will for you at no cost. This is a good opportunity to ensure your assets are distributed according to your wishes. One of the most important decisions you’ll make in this process is choosing your beneficiaries. While it might seem straightforward, selecting the right beneficiaries requires careful consideration.

Understanding the Basics

A beneficiary is a person or entity you designate to receive your assets after your death. These assets can include everything from real estate and bank accounts to personal belongings and life insurance payouts. Choosing the right beneficiaries ensures your legacy is preserved and your loved ones are provided for.  

Who Can Be a Beneficiary?

In most cases, you can name almost anyone as a beneficiary. Common choices include:

• Spouse/Partner
• Children
• Other Family Members
• Friends
• Charitable Organizations (If you wish to support a cause, you can name a charity as a beneficiary.)
• Trusts (You can establish a trust and name it as a beneficiary, allowing for more complex asset distribution.)

Factors to Consider When Choosing Beneficiaries

Choosing the right beneficiary isn’t just about listing names. It requires careful thought about several factors:

• Relationship Dynamics. Consider the current state of your relationships. Are there any family conflicts that might arise from your choices?
• Financial Needs. Assess the financial stability of your potential beneficiaries. Some may need greater support than others.
• Age and Maturity. If you’re considering minor children, you’ll need to appoint a guardian and potentially establish a trust to manage their inheritance until they reach adulthood.
• Special Needs. If a potential beneficiary has special needs, consider establishing a special needs trust to ensure they receive support without jeopardizing their eligibility for government benefits.
• Tax Implications. Different beneficiaries may face different tax issues. Consult with your lawyer to understand the potential tax impact on your estate and your beneficiaries.
• Contingent Beneficiaries. It’s crucial to name contingent beneficiaries, who will receive your assets if your primary beneficiary pre-deceases you. This prevents your assets from going through legal procedures without clear direction.
• Updating Your Will. Life circumstances change. Marriage, divorce, births, and deaths can all impact your beneficiary choices. Regularly review and update your will to reflect these changes.

The Importance of Clarity and Precision

When naming beneficiaries, clarity is essential. Use full legal names and, if possible, include addresses or other identifying information. This helps avoid confusion and disputes. If you’re naming a charitable organization, include its full legal name and tax identification number.

Leveraging Your IAM Legal and Personal Protection Plan Benefit

Your IAM Legal and Personal Protection Plan provides you with the invaluable opportunity to have a simple will prepared by a lawyer at no cost. This is the perfect time to discuss your beneficiary choices with a professional. They can provide legal advice tailored to your specific situation and ensure your will accurately reflects your wishes.

Why Professional Guidance Matters

While online templates and DIY will kits might seem appealing, they often lack the personalized guidance needed to make informed decisions. A lawyer can help you:

• Understand the legal implications of your choices.
• Ensure your will complies with state laws.
• Minimize the risk of disputes and challenges to your will.
• Help you understand the importance of contingent beneficiaries.

Don’t delay – schedule an appointment with your lawyer today and take control of your future. Tap below or call the Member Helpline at 646-921-9128.

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