The idea of estate planning might seem intimidating to some people. Many of us do not like to think about our death, and others find matters concerning finances and property to be complicated.
Beneficiary designation in Dublin, OH is simple, but can have a huge impact on the inheritance process. Talk to the experienced estate planning attorneys at DuPont Law Group to learn how to use beneficiary designations to protect your loved ones after you die.
What Is a Beneficiary?
A beneficiary is an individual chosen to receive specific property upon your death. In other words, a beneficiary is a successor owner to whom your ownership rights transfer after you die.
Depending on what is written in your estate planning documents, a beneficiary may not have rights to the property in your estate until your death, meaning you have full control over assets while you are alive. If you have a brokerage account with a named beneficiary, for example, you can sell all the investments, close the account, and use the money to take a vacation without the beneficiary’s approval.
People often name their spouse or children as beneficiaries, but it is your choice. You can designate anyone you would like to have the property, whether it be a trust, corporation, or charity. A Dublin attorney could meet with you to discuss the implications of different beneficiary designations and help you make an informed decision.
Naming Beneficiaries Avoids Probate
When you die, any property you own solely in your name must go through the probate process. Probate refers to the court-supervised process of collecting your assets, paying your debts, and distributing what is left to your heirs. Probate can take months or even years, and your estate must pay the expense of administering the process.
Avoiding probate to the greatest extent possible is a hallmark of many well-considered estate plans. When naming a beneficiary, assets in your estate become their property the moment you die. Because it is no longer yours, it does not need to go through probate.
Your family does not legally have access to any probate property until the process is complete. Using beneficiary designations wisely can allow your loved ones immediate access to cash and other property, ensuring it will be used for their benefit and not to pay your creditors. Avoiding probate also keeps the transfer of assets private. An attorney in Dublin could advise you about how to ensure your property passes to your designated beneficiaries efficiently, with minimal tax liability and other risks to them.
Important Things to Know About Beneficiary Designation
Ohio Rev. Code § 2131.10 states that beneficiary designations override conflicting provisions in a will or trust. For example, this means your child will receive property if they are designated as its beneficiary, even if your will says that your spouse should receive it.
If you wish to name a minor as a beneficiary, a Dublin, OH attorney could help you set up a trust to manage the assets until they reach legal age and can inherit. Otherwise, the probate court may need to appoint a guardian to manage the assets for the minor. A trust is also worth considering if your beneficiary is an individual with special needs.
It is important to name a contingent beneficiary who will own the asset if the primary beneficiary is deceased when the property transfers. It is also critical to review beneficiary designations periodically. Relationships and financial circumstances evolve over time, and your beneficiary designations should reflect this. We recommend our clients review their estate planning documents at least every 5 years, or more often if major life events occur.
Contact a Dublin, OH Estate Planning Attorney About Naming or Designating Beneficiaries
Beneficiary designations are relatively simple but very powerful estate planning tools. By naming beneficiaries for your property, you can avoid probate and ensure your inheritors get immediate access to certain assets upon your death.
Talk to our skilled attorneys about beneficiary designation in Dublin, OH. It is never too early or too late to begin preparing for the future, so get in touch with us today at 614-389-9711.
Greg DuPont, JD, CFP®, is a well-respected estate attorney, financial advisor, public speaker, and published author. He centers his multiple businesses around education, guidance, and relationship-building. This comprehensive combination gives him, and his team, the opportunity to effectively serve both individuals and their families. He is a life-long resident of Central Ohio and spends the majority of his time with his wife, Julia, and daughter, Sophie.
