Do you keep your estate plan and beneficiary list up to date?





It is a question you should ask yourself on a regular basis: is your estate plan up to date? A Supreme Court case earlier this year highlights the importance of keeping your estate plan and your named beneficiaries current. In the case, Kennedy v. Plan Administrator for DuPont Savings and Investment Plan, a woman sued her late father’s pension plan claiming that his pension should be paid to her and not the man’s surviving wife. The wife was listed as the sole beneficiary on the husband’s pension plan account; however the daughter claimed that the wife forfeited all rights to the pension money in an earlier divorce.

The Supreme Court found that the pension plan administrator had a duty to comply with the terms of the pension plan document. So, even though the deceased man divorced his wife before his death and may not have wanted her to receive the money in his pension plan after his death, she was still listed as the sole beneficiary on his plan documents. This is just one example of how neglecting your estate plan can negatively affect your heirs after you pass away.

Here are a few things to consider when updating the beneficiaries in your estate plan:

  1. If you want to name a minor as a beneficiary, set up a trust. Otherwise, you could end up in probate if the beneficiary is under the age of 18 when you die. Using a trust will also allow you to control how and when your assets pass on to the minor.
  2. Don’t think that by only changing the beneficiaries in your will that all your other accounts are covered. One thing some people don’t realize is that your accounts with beneficiary designations aren’t affected by beneficiary changes in your will. For example, to change the beneficiary on your 401k, IRA, or insurance plans you have to make the change with each plan.
  3. Consider naming a backup beneficiary. It is a good idea to consider naming another person in your plans in case something happens to your primary beneficiary. For example, if your primary designee dies before you do – and then you die before you can make a change – then your assets will end up in probate. Having a contingency designee is a way to avoid that scenario.

To better understand inheritance rules for the assets that comprise your estate, speak with a qualified estate planning and elder law attorney. To talk with an experienced estate planning attorney knowledgeable about estate administration and asset protection in Pennsylvania, please contact the law offices of Shields and Boris.

Elder Law Offices of Shields and Boris

109 VIP Drive

Suite 200

Wexford, PA 15090

Toll Free: (800) 879-0984

Phone: (724) 934-5044


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Elder Law Offices of Shields and Boris
109 VIP Drive
Suite 102
Wexford, PA 15090
Phone: (724) 934-5044
Toll Free: (800) 879-0984

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