We seniors spend a lot of time saving for our retirement and hopefully be able to leave a “handsome-enough” amount for our beloved ones to share when we are gone. Unfortunately, naming your beneficiaries might be the most overlooked part of your estate planning as we usually tend to forget assessing who gets what and what goes to whom.
Naming your beneficiaries is more than just appointing the “lucky one”. In fact, appointing the wrong person or people is more like risking your after life plans—plans not being carried out at all, or as planned. Remember, this will be a time when you can no longer have a say on what’s going on so might as well plan everything well while you still can.
The first step to a perfect beneficiary appointment starts with the senior assessing his or her choices of beneficiaries—and by beneficiaries, I mean, more than one, just in case your first choice encountered a problem. Here are the things you need to consider when choosing the best beneficiary for your insurance policies, pension plans and IRAs:
·    List down family members you would like to leave your estate to, if and when something happens to you. Be particularly aware of their age as it is very important. A minor will need a trustee or guardian before benefits are transferred to them.
·    The beneficiary’s capability of managing assets. Like mentioned above, a minor cannot be trusted fully with your assets so they need a trustee. In some cases, even a full grown adult is not capable of handling assets. A senior can determine this by gauging the way the beneficiary handles his own personal finances.
·    Inspect your plans and coverage. Sometimes, the company automatically appoints the nearest living relative or survivor as your primary beneficiary even if you prefer other appointee.
·    Keep a list of contingent beneficiaries. This list will serve as a reference if something happens to your primary beneficiary and he or she won’t be able to fill the spot. Just make sure this list comes attached with your will.
Your best bet when naming a beneficiary would be your spouse. This allows smoother, almost hassle-free transfer of benefits. Of course, second in line is your child, or children—if you have many. However, you need to update your plans and coverage once in a while, most especially after a divorce or remarrying another person as there will be conflict on your documents. Always consult your lawyer when making a decision, especially on matters like this. This way, your lawyer will be able to advise you on how to go through it legally.