If you fail to name a beneficiary or do not name a contingent beneficiary in case something happens to the primary beneficiary, the money or account could be subject to probate upon your death.

The probate process can add costs and delays to settling an estate. Probated accounts and property must be reviewed by the court and distributed in accordance with a will instead of a beneficiary designation. If you do not have an existing will, the money or account would be subject to state intestacy laws, which determine who has the right to receive your money and property at your death. These laws typically give preference to a person’s spouse and children, but you may want somebody else to receive it.

Failing to update a beneficiary can have a major effect on your estate plan. You should review your beneficiaries regularly with your attorney. Call us today.