• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Unsworth LaPlante, PLLC

Vermont Estate Planning Attorneys

Vermont: (802) 879-7133

Attend A Free Workshop
  • Home
  • Our Firm
    • About Our Firm
    • Meet Our Team
    • What to Expect When Working with Us
  • Services
    • Estate Planning
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid Planning & Elder Law
    • Pet Planning
    • Special Needs Planning
    • Trust Administration
    • Young Families Planning
  • Resources
    • Articles
    • Elder Law Reports
    • Elder Law Resources
      • Burlington
      • Montpelier
      • Rutland
      • St. Johnsbury
      • White River Junction
    • Estate And Gift Tax Figures
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Elder Law
        • In-Home Elder Care
        • Medicaid
        • Planning for Long-Term Care
      • Estate Planning
        • Business Succession Planning
        • Estate and Gift Tax
        • Estate Planning for Blended Families
        • Estate Planning for Parents
        • FAQs for Families Without an Estate Plan
        • LGBTQ Estate Planning
        • Taxes on Inheritances in Vermont
      • Incapacity Planning
      • IRA & Retirement Planning
      • Gift, Estate, and Inheritance Taxes
      • Legacy Wealth Planning
      • Philanthropy and Estate Planning
      • Pet Planning
      • Revocable Living Trust
      • Special Needs Planning
      • Trust Administration
      • Trusts
      • Wills
    • Is Your Estate Plan Outdated?
    • Medicaid Resources
      • Medicaid Analysis Worksheet
      • Medicaid Guide
      • Vermont Medicaid
    • Newsletters
    • Presentations
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
    • SECURE Act
    • Top Estate Planning Techniques
  • Webinars/Seminars
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact
Home » The Beneficiary Designation Form

The Beneficiary Designation Form

September 22, 2014 by Ellen LaPlante

We always hear of how an overlooked detail can wreak havoc to even the most carefully prepared plan and why your estate planning lawyer is your best insurance policy against those small errors. A perfect example is the beneficiary designation form. This week, we explore the many ways this one form can cause problems.

The Misleading Simplicity

It seems as though it’d be simple: fill out the form, get the proper signatures and then file it away with the rest of your estate planning documents. Maybe the simplicity is what gets us in trouble. Either way, the problems crop up after a death and after it’s too late to correct it with just a quick revision.

Beneficiary Designation FormBelieve it or not, the most common mistake is an unsigned beneficiary designation form. And if you updated it, having the new copy without the necessary signature will likely mean the old one goes into effect. Imagine the new spouse discovering that the former spouse now has a claim.

And don’t overestimate your mathematical skills – and don’t underestimate the value of a calculator.

Your Beneficiary Percentages

If you designate more than one primary beneficiary, you’ll allocate a percentage to each. Be sure your total equals 100%. In one instance, a participant designated two primary beneficiaries. She allocated one 50% for the other, she allocated 10%. That left 40%, which were designated to two contingent beneficiaries. The goal wasn’t for the four to share the account, unfortunately, the form hadn’t been properly prepared.

Your will shouldn’t battle your beneficiary designation. The beneficiary designation will win out every time.

Also, some mistakenly believe that a divorce or property settlement will void the former spouse as the beneficiary. A new spouse will automatically receive any retirement payouts; not so with the life insurance beneficiary. If a former spouse is named, the former spouse gets it.

Remember that life changes and your designations should be revised to reflect those changes. Births, deaths, marriages, divorces and adoptions can affect everything and should serve as reminders to update the designations.

Review Your Beneficiary Designation

We strongly encourage clients to do an annual review of not only their insurance policies, but their overall estate plan. You’d be surprised at what changes over the course of a year and how those changes can affect both you and your family.

Of course, you can memorialize those changes at any time, but getting into the habit for at least an annual review can provide peace of mind. Also, if your policies are with your employer, be sure to review them periodically as well. Be sure that they are signed and dated, that they “add up,” – and that they make sense.

Finally, while you want to revise and update as your family changes and grows, it’s always a good idea to keep the old designations in case there is a challenge to the current one.

Have questions about how life insurance policies can help protect your family? Contact our offices today and schedule your complimentary consultation.

  • Author
  • Recent Posts
Ellen LaPlante
Ellen LaPlante
Ellen LaPlante is an attorney whose mission is to provide clients with guidance in Estate Planning, Elder Law, and Medicaid Preparation. She is barred in Vermont and New York. Ellen helps clients put together unique estate plans, including assistance with Trusts, Wills, Powers of Attorney, and Advance Directives. She also works with clients on Medicaid Planning and qualifying for Medicaid assistance.
Ellen LaPlante
Latest posts by Ellen LaPlante (see all)
  • How to Apply for Senior Medicaid in Vermont - December 11, 2022
  • Planning for the “Silver Tsunami” - November 1, 2022
  • Discharge of Indebtedness Income and Student Loan Forgiveness - October 27, 2022

Filed Under: Beneficiary

Other Articles You May Find Useful

Essex Junction estate planning attorney
Is It Time to Update Your Beneficiaries?
Unsworth LaPlante, PLLC
Estate Planning for Divorces
Unsworth LaPlante, PLLC
Options for Leaving Money to Your Children

Primary Sidebar

Elder Law and Medicaid Planning Attorneys

Unsworth LaPlante, PLC

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Blog Subscription

Sign up to Unsworth LaPlante's estate planning blog to receive all the latest news and updates.

  • This field is for validation purposes and should be left unchanged.

Essex Junction, VT

26 Railroad Ave
Essex Junction, VT 05452
United States (US)
Phone: (802) 879-7133
Fax: (802) 879-0408

Map

unsworth_sidbr_map

Office Hours

Monday8:00 AM - 4:00 PM
Tuesday8:00 AM - 4:00 PM
Wednesday8:00 AM - 4:00 PM
Thursday8:00 AM - 4:00 PM

Footer

footer-logo
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

The information on this Vermont Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

American Academy of Estate Planning Attorneys, Inc. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc.