Estate planning includes several areas of importance, including designating beneficiaries. Your loved ones usually receive their inheritance quickly when you name designated beneficiaries. Naming beneficiaries in Maryland will help avoid the probate process. Fighting over estates between family members is a common problem without estate planning.
An intestate estate
Some of the most famous people on the planet have left behind legal issues by dying without a current will. Both Prince and Aretha Franklin died intestate, without a will to name their heirs. Estate planning helps to prepare the ground for your heirs when you die. Avoiding the probate process is the aim of designating beneficiaries in your will.
What are beneficiary designations?
Every life insurance policy and bank account you open asks you to name beneficiaries. Naming beneficiaries to your accounts can help your heirs avoid probate. Naming beneficiaries in your will helps to ensure your heirs get the inheritance you chose. The wider estate planning process needs to be considered when naming designated beneficiaries. If beneficiaries are named without considering your wider estate they could face high taxes.
Changing designated beneficiaries
Designated beneficiaries are a good option for protecting your assets from probate. Making sure designated beneficiary information is up to date removes former family members. Checking over the details of your estate will help limit these issues. Changes in family circumstances can lead to mistakes in the estate planning process providing your assets to the incorrect heirs.
Now is a good time to start the estate planning process. Doing so can provide peace of mind for yourself and your loved ones.