Name Your Beneficiaries
Have you named your beneficiaries? If so, when is the last time you updated them?
Naming your beneficiaries is very important and it is one of the few things that you can keep in your control. In the event of your passing you want your hard earned money to go where is was intended to.
As a rule of thumb it is important to update your beneficiaries when you have a life changing event. These events can include getting married, having children, changing jobs, getting a divorce, having grandchildren, etc.
What does per stirpes mean?
When you check the Per stirpes box it means that the money will go to the next of kin. For example: say Mr. Jones listed his son and daughter as the beneficiaries AND he has checked the per stirpes the box. If anything happens to his son or daughter and they pass away, the money will still be divided up to the next of kin. Meaning the living beneficiary will receive the percentage listed and the family of the deceased beneficiary will also receive the percentage that was listed.
A beneficiary will supersede a will so it is important to keep these up to date.