Beneficiaries are the heirs to an estate. They can be people and/or organizations that you designate to inherit certain assets after your death. While choosing your beneficiaries is an important part of the estate planning process, it’s also essential that you:
- Name one or more beneficiaries for each of your assets
The FAQs below shed some more light on the importance of beneficiary designations and how they work in Colorado estate planning.
Facts & Answers About Beneficiaries in Colorado Estate Planning
We invite you to explore these beneficiary FAQs for more information. Don’t hesitate to contact Evans Case, LLP for a free consultation whenever you’re ready for more answers.
Why Should I Designate Beneficiaries in My Estate Plan?
Naming beneficiaries can offer several benefits, including (but not limited to):
Who Should I Name as a Beneficiary?
Choosing beneficiaries can require careful consideration of several factors, from the nature and scope of your assets to the laws, your wishes, and more. As you consider who to designated as your beneficiaries, think about:
The age and health of the people you name as your heirs: Do you want minors to be among your beneficiaries? What about legal adults who may have special needs, issues managing money, or addiction problems? Depending on who your beneficiaries are, you may want to set up devices, like trusts, to help manage the funds with the best interests of your beneficiaries in mind.
Whether you want to give to any organizations: Are there certain charitable causes you’d like to support? If so, what type(s) of assets do you want to designate for those beneficiaries? Again, there may need to be some special plans put in place in order to facilitate this transfer without causing more issues or challenges for the beneficiaries of your estate.
Potential contingencies: What if one of your beneficiaries passes away before you do? What if someone who isn’t named as a beneficiary tries to challenge your will? Planning for these and other contingencies can help you make sure that you have all of your bases covered—and that your wishes are properly carried out in the future.
How Often Should I Check & Update My Beneficiary Designations?