Legacy Of Hope Planned Giving

1. Create a list of your non-probate assets and their corresponding institutions.

For example, perhaps you have a Roth IRA account with Fidelity and a life insurance policy with Nationwide. You may find it helpful to track this information in an Excel spreadsheet or keep a written list alongside your other estate planning documents. Consider including important information, such as the account or policy number. Having this information makes it easier for your loved ones to track down your accounts after you’re gone.

Another option is to use an online estate planning tool — like FreeWill — to track your beneficiary designations. We help you organize all your non-probate assets in one place, so you can plan your beneficiary designations easily. Then you can print a single page that lists your beneficiary information, and store it in a safe place with your will and other important documents.

2. Contact each institution where you have non-probate assets to set up your beneficiaries.

There are usually a few ways to set up your beneficiaries, depending on the institution: You can call their customer service line and tell them you want to designate or update a beneficiary. Some institutions provide beneficiary designation forms on their website that you can print, fill out, and mail back. Other institutions let you set your beneficiary designations through your online account portal. If you use FreeWill’s beneficiary designation platform, we provide step-by-step instructions for how to reach out to each institution, including specific phone numbers and help lines. It’s always a good idea to follow up with your institution to make sure they received and recorded your designation.

3. Add this beneficiary information to your tracking document.

Whether you’re tracking your beneficiary designations electronically or on paper, it’s a good idea to jot down your beneficiary for each account. You should store this information with your personal papers so it’s easy to find after you pass away.

If you don’t name beneficiaries for your non-probate assets, you won’t have any control over who inherits them. Many institutions will list a default beneficiary, like your children or estate. However, it will take time to determine who should receive the assets, which will delay how quickly your loved ones can access and use them. It’s also the beneficiary’s responsibility to claim ownership of a non-probate asset. So if no one knows the asset exists, or doesn’t know who should inherit it, it could get caught in probate, inaccessible to your loved ones who may need it. That’s a confusing situation that you can avoid by designating beneficiaries and keeping record of this information.

Designating beneficiaries isn’t enough — you also need to keep them updated. As your life changes over time, it’s normal for your beneficiary preferences to change as well. If you don’t update your beneficiary designations, your assets could go to beneficiaries you no longer want to receive them — like an ex-spouse. Beneficiary designations override what’s written in your will, so it’s important to keep them up to date. For example, say you wrote your ex-spouse out of your will after you got divorced, but left them as the beneficiary on your life insurance policy. They may be entitled to that payout after you die, even if there are other people you wanted to receive it. That’s why it’s important to review your beneficiary designations often and keep them current. Estate planning professionals recommend reviewing your estate planning documents — including your beneficiary designations and your will — every three to five years, or after any major life events.

Yes — it’s always a good idea to have a last will and testament! Only certain assets are able to skip probate. Any other assets you own — including your home, vehicles, and even your pets — will likely have to go through the probate process. Having a will saves time, money, and stress for your loved ones. It’s a powerful legal document that lets you protect the things that matter to you. For example, if you have minor children, you can use a will to name a guardian for them if you pass away.