Designate a Beneficiary

Hello All,

This week is the eleventh issue of our Finances for Feminists Financial Bingo Series!

Have you set up a beneficiary for your financial accounts? A beneficiary is someone you assign to get your assets when you die. Many people assume assigning a beneficiary is only necessary if you are elderly, have children, or are very wealthy. I am here to say this task is for everyone, regardless of age or income! So yes, I am talking to you! In the event of your death, you want to make sure you decide where your money goes, which may or may not align with the inheritance laws in your state or country. 

How does it work?

First, decide who you want to receive your assets. You can assign multiple people to accounts and set it up to divide the assets according to your wishes. For instance, if you want your sisters to each get a portion of your retirement account you can assign them as equal beneficiaries. You can also assign different people to different accounts. It's important to know that you can change these as needed; this does not need to be a forever decision!

To set up a beneficiary you will need the individual's name, social security number, contact information, etc. Many banks offer online features to set this up. Even if you think you have already done this step it's a good idea to review what information the bank has. 

What if I have a will?

Bravo for putting together your will! For the majority of cases, a designed beneficiary in a financial account takes precedence over what is written in your will. Check with your lawyer so you understand how it will work for you. 

Let me know how it goes! Shoot me an email at hello@financesforfeminsts.com. Well done on another bingo square completed!