Naming Alternative Beneficiaries: A Simple Step with Big Implications in Oregon

The way we plan for the future can have profound effects on our loved ones. When it comes to estate planning, one essential but often overlooked step is naming alternative beneficiaries on your accounts.

Why Are Alternative Beneficiaries Important?

Simply put, an alternative beneficiary is the person or entity who will receive your assets if your primary beneficiary passes away before you do. Without an alternative named, your assets could end up in probate court if the primary beneficiary isn't alive. Plus, with retirement accounts, your beneficiaries may be subject to less generous time periods for taking distributions.

Navigating Probate

Probate is a legal process that takes place when someone dies having only a will, or without a proper estate plan. It involves the court supervising the distribution of assets, which can be time-consuming, costly, and public. In other words, probate is something most people would rather avoid.

Preventing Probate with Alternative Beneficiaries

By naming alternative beneficiaries, you ensure that your assets will go directly to them if the primary beneficiary is no longer around. This bypasses probate, saving your loved ones time, money, and stress. It's a simple step that carries a lot of weight.

Choosing Your Alternative Beneficiaries

Your alternative beneficiaries can be anyone: family members, friends, a charity, or a trust. The important part is making sure the document clearly states who gets what if the primary beneficiary isn't able to.

Professional Guidance

We can help you here in Portland, Oregon to navigate these decisions and create a comprehensive plan that reflects your wishes and protects your assets. It's never too early to start planning. Reach out to us if you'd like to schedule a consultation.

If you want to get started on your estate plan, read about our estate planning services and schedule an appointment.

To your family's health + happiness.

~Candice N. Aiston