Have you made contingency plans for your beneficiaries?

December 16, 2024

Sometimes the best laid estate plan can go awry. This can happen if a beneficiary predeceases you. To avoid having state law dictate who receives your property, name contingent beneficiaries on retirement accounts and insurance policies. In addition, ensure that your will or trust is clear on what happens if an heir predeceases you.



Suppose you’re splitting your assets equally between your two children. If one of them dies, what happens to his or her share? If your plan (or state law) provides for assets to be distributed per capita (“by the head”), they’ll go to the surviving child, potentially disinheriting your grandchildren. In contrast, if assets are distributed per stirpes (“by the branch”), then half will go to your surviving child and the other half will go to the deceased child’s family.

This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.

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