While it is possible for many types of assets to bypass probate when a beneficiary has been named, there are pitfalls to avoid.
Without a beneficiary, the account will be subject to probate and the state will determine how to distribute the money.
Make sure your client isn’t unintentionally passing money to an ex-spouse, or an ex-spouse’s children, or a new spouse’s children, instead of their own children.
A minor child cannot legally own assets. Consider passing the assets into a trust that can be distributed at an age your client chooses.
The disabled person may lose government assistance if he or she receives the benefit directly.
Things change as life progresses. Make sure your clients’ beneficiary designations match today’s needs.
Help your clients review the beneficiary forms for each of their financial assets.