Austin Probate Lawyer

Designation of a Beneficiary

The designation of your beneficiary or beneficiaries can be a somewhat challenging task. Beneficiaries are those that are to receive the death benefit upon one’s passing, and they are named in one’s life insurance policy. An individual may select one person, multiple people, a trustee, a charity, or his or her estate as the beneficiary or beneficiaries. The estate acts as the default beneficiary, should one fail to name another one prior to his or her passing.

Designating a beneficiary is a wise step to take because it allows one to avoid any additional taxes or fees associated with allowing one’s death benefits to transfer immediately to the estate. More money will go to your loved ones, instead of to unnecessary costs.

The Two Types of Beneficiaries

There are two types of beneficiaries: the primary beneficiary and the secondary beneficiary. If both you and your primary beneficiary die around the same time, then the secondary will receive all death benefits. This act of redundancy may seem unnecessary because the chances of both you and your primary passing away around the same time could appear to be quite unlikely. However, these incidents do occur, and should something such as a car accident claim the lives of both you and your primary, then a secondary beneficiary will be in place to receive the benefits.

Contact Us

If you would like to learn more about setting up a beneficiary for your life insurance plan, Austin probate lawyers Slater & Kennon, L.L.P. can help you. Please call their law offices at 512-338-1100 today to set up an appointment.