Beneficiary Designations in Staten Island Estate Planning

The estate planning process involves various elements, including drafting a will and designating beneficiaries for certain assets. Under state law, a beneficiary designation overrides a will, which can significantly impact the distribution of your assets after you are gone.

When you need assistance with beneficiary designations in Staten Island estate planning, a lawyer could advise you on how to proceed. An experienced estate planning attorney can consider your goals and ensure you designate the appropriate parties to receive your important assets. Contact our office to schedule a consultation.

Common Types of Beneficiary Designations

A beneficiary designation identifies the person who will receive an asset when the owner dies. Some common assets that allow for a beneficiary designation include an insurance policy, retirement account, annuities, and other financial accounts. A trust may also require a beneficiary designation, and many people designate a beneficiary in their last will and testament. A beneficiary is chosen and may not be related to the person whose asset they are receiving, but an heir inherits property when someone dies without a will.

Some common types of beneficiary designations include:

• Eligible Designated Beneficiaries: Spouses, children under 18 years of age, individuals with a disability, chronically ill individuals, and those within 10 years of age of the deceased. Eligible designated beneficiaries have additional rights to designated beneficiaries.
• Designated Beneficiaries: Any living person who does not fall into the above categories, such as a friend, extended family member, elderly parent, or sibling
• Not Designated Beneficiaries: A nonliving beneficiary, such as a charity, trust, or estate
• Contingent Beneficiaries: A backup beneficiary who receives the asset in the event the primary beneficiary cannot

To discuss which types of beneficiary designations work best in a particular circumstance, speak with a Staten Island estate planning attorney.

Factors to Consider When Choosing a Beneficiary

While choosing a beneficiary might seem simple, there are some factors to consider when designating a beneficiary, for example:

• Age: A beneficiary must be over 18 years old. Otherwise, a trust will need to be established on their behalf.
• Financial Support: Financial dependents such as spouses, children, and other family members are often designated as beneficiaries.
• Insurable Interest: There must be an insurable interest or a legitimate financial interest.
• Policy Specific Rules: Some life insurance policies or retirement accounts set specific guidelines for beneficiary designations. An estate planning lawyer can review the policy to ensure an intended beneficiary complies.
• Revocability vs. Irrevocability: Some beneficiaries may be irrevocable, meaning their rights cannot be revoked without their consent.

A lawyer in Staten Island could help ensure that designated beneficiaries meet all legal requirements when estate planning.

Consult a Staten Island Attorney About Beneficiary Designations When Estate Planning

When you work hard and have earned significant assets, you want to ensure your loved one’s interests are protected after your death. Louis Lepore helps clients develop comprehensive plans that protect their personal and financial interests.

Every estate plan is unique, and you need a lawyer who will take the time to listen to your goals when making your beneficiary designations in Staten Island estate planning. Schedule a free and confidential consultation today.