Have Your Clients Checked Their Beneficiary Designations Lately?

As part of a regular financial wellness routine, clients should be advised to regularly check their beneficiary designations on retirement accounts and other financial accounts.  These designations should always be updated after major life events, such as the birth of a child, marriage or a divorce.  The beneficiary designations should also be complete and legible.  Taxpayers should be reminded that when allocating an account between multiple beneficiaries, the total amount should equal 100%.  Taxpayers should also note that the rules governing retirement account distributions have changed dramatically in recent years, and so have the tax consequences of choosing any particular beneficiary.  Regularly examining and updating beneficiary designations ensures that a taxpayer's wishes will be carried out upon death, and it can also reduce the likelihood of litigation and disputes among family members.  For more information on the rules governing retirement account beneficiaries, visit Tax Facts Online. Read More: Link to Q3696.