How Do I Choose The Beneficiary For My Estate Plan?

Are you putting together your estate plan in Massachusetts? If so, it is crucial that you identify the people who you want to benefit from your property and assets. At Fisher Law LLC, we people and families navigate even the most complex of estate planning matters. Here, our Boston estate planning lawyer highlights key points to know about choosing your beneficiary in Massachusetts.

What is a Beneficiary in Estate Planning?

Investopedia defines a beneficiary as the party “designated to receive the benefits of property owned by someone else.” In the context of estate planning, a beneficiary is the person (or entity) that is selected to receive assets or benefits from an estate, trust, or other legal arrangement after the grantor or owner’s death. The designation is typically outlined in a will or in trust documents, detailing how the assets will be distributed and under what conditions. Beneficiaries can include:

• Spouses;
• Children;
• Other family members;
• Close friends;
• Trusts; and
• Charitable organizations.

Is a Beneficiary the Same Thing as an Heir? 

Not exactly. The term beneficiary is used to describe someone specifically named in a legal document like a will or trust to receive assets or benefits. On the other hand, the term heir is a person who is entitled to inherit from a deceased’s estate under the laws of intestacy. Of course, it is possible for a close loved one—such as an adult child—to be both a legal heir and a named beneficiary. If you have specific questions, an experienced Boston estate planning lawyer can help.

You Have Considerable Discretion to Select Your Preferred Beneficiaries 

In Massachusetts, people have considerable discretion in selecting their preferred beneficiaries. Your estate plan is your opportunity to determine what will happen to your property and assets. It is flexibility that allows you to designate who will receive their assets—whether they are family members, friends, charities, or other entities. Your chosen beneficiaries can be outlined in your estate planning documents. 

A Proper Beneficiary Designation May Help You Avoid Probate in Massachusetts 

In Massachusetts, a proper beneficiary designation can help avoid the probate process. By naming a beneficiary directly on these accounts, the assets can transfer directly to the named individual upon the owner’s death, bypassing the often lengthy and costly probate proceedings. It is an estate planning method of transferring assets that is efficient and can provide a smoother and faster distribution to beneficiaries. Beneficiary designations are often used for:

• Life insurance policies;
• Retirement accounts;
• Investment accounts; and
• Bank accounts.

We Provide Solutions-Focused Estate Planning Services to Boston

At Fisher Law LLC, our Boston estate planning attorney is committed to helping people and families navigate complex issues. We work to ensure that you have an estate plan that provides peace and security. If you have any questions about choosing beneficiaries, please do not hesitate to contact our estate planning firm today for a confidential case evaluation. Our firm is proud to serve communities throughout all of the Greater Boston area.

Source:

investopedia.com/terms/b/beneficiary.asp