You may have made a giant estate planning mistake without even knowing it — forgetting to update the names of your beneficiaries for your employer-sponsored retirement plans, IRAs, life insurance policies, mutual funds, bank accounts, brokerage accounts, annuities and 529 college savings plans.
If your beneficiaries are out-of-date, when you die, your assets could go the wrong people — a former spouse, for example — no matter what your will says.
You probably designated a beneficiary when you initially bought insurance or signed up for your retirement plans. And you likely filled out POD (payable on death) or TOD (transfer on death) certificates when opening your bank and investment accounts, effectively naming beneficiaries for them.
But your life and wishes may have changed since then. That’s why it’s wise to periodically review all your beneficiary designations and amend any that are out-of-date. Some financial advisers suggest also naming secondary or contingent beneficiaries. If you don’t, and your primary beneficiary dies before you do, your assets will go to probate, which can be costly and time-consuming.
To read the rest: http://www.forbes.com/sites/nextavenue/2013/12/16/the-big-estate-planning-goof-you-may-be-making/
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