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3 Reasons to Review Your Beneficiaries Now Thumbnail

3 Reasons to Review Your Beneficiaries Now


Life can change in an instant. Here at Ambient Financial Advisors, we understand that everything might not always go according to plan. That's why it's so important to make sure your financial wishes are clear, especially when it comes to your beneficiaries.

These are the folks you choose to receive your assets (money, property, etc.) after you're gone. Think of it as your way of giving your loved ones a little bit of a safety net during a difficult time. But here's the thing: life throws curveballs, and sometimes our beneficiary designations need to be adjusted to reflect those changes.

Whether you've been a client of ours for years or you're just starting to think about your financial future, here are 3 reasons why you might want to take a look at your beneficiary designations right now:

1. Oops! Wrong Name on the Check?

Life gets busy, and sometimes those beneficiary forms we fill out when we open new accounts get tucked away and forgotten. The problem? If your life has changed since then – maybe you got married, had kids, or unfortunately went through a divorce – those old designations might not reflect your current wishes. Imagine if you meant to leave everything to your new spouse, but your ex is still listed as the beneficiary on your old savings account! That could cause a lot of unnecessary stress for your loved ones at a time when they should be grieving.

2. Your Will Might Not Be the Whole Story

You might think having a will takes care of everything, but there are some assets that skip the whole probate process (that long, drawn-out legal thing). This means your will might not have a say in who gets your life insurance policy or that joint bank account you have with your sibling. By reviewing your beneficiary designations, you can make sure these assets end up in the right hands, without any confusion.

3. Unexpected Tax Surprises (Not the Fun Kind)

Nobody wants their loved ones stuck with a giant tax bill after they're gone. Believe it or not, how you set up your beneficiaries can actually impact how much your heirs owe in taxes. We're not talking tax experts here at Ambient, but we can definitely connect you with someone who is! They can help you figure out the best way to structure your beneficiary designations to minimize those tax headaches for your family.

Even if you think your beneficiaries are all set, it's always a good idea to take a look every once in a while, especially after a major life change. Here at Ambient Financial Advisors, we're here to help you through these transitions. Connect with us today, and let's chat about making sure your financial wishes are clear, no matter what happens next.

 

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

A portion of this article was prepared by WriterAccess.

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