Winner’s Corner

Are Your Beneficiaries Up to Date?

A beneficiary is a person or entity, like a charity, trust, or estate, designated to receive assets from financial accounts after the account holder’s death. Even if you have a will, it’s important to also name beneficiaries and keep their information up to date.

Why Keeping Beneficiaries Current Is So Important

1. It Eliminates Confusion: Beneficiary designations provide clarity about who should receive what. This reduces the chances of disputes or delays for your loved ones.
2. It Helps Avoid Probate: Accounts with named beneficiaries typically bypass probate entirely, allowing for a faster and smoother transfer of assets.
3. It Ensures Alignment with Your Estate Plan: Your will may say one thing, but beneficiary designations override it. Beneficiary designations take precedence over wills or trusts.
4. It Prevents Delays Due to Missing Contact Info: If a beneficiary’s address or phone number has changed, it can hold up payment. Keep their details current.

What Happens if You Don’t Name a Beneficiary?

If you fail to designate a beneficiary, or the information is invalid, your account may be distributed:

• According to the account’s default rules (plan document or custodian)
• Under state law
• To your estate, which may trigger probate and tax implications

Take Action: Contact us for a review of your DECU account beneficiaries today.