Deep Dive #4: Who Should Be a Beneficiary?
Ok - so you’ve done your homework: started the conversation, expanded your definition of wealth, made the list, and thought about the gifts you can leave behind.
Congratulations! Take a moment to recognize this huge milestone!
"The best gift anyone can give, I believe, is the gift of sharing themselves."
- Oprah Winfrey
Your list probably has a mix of cash, valuables, collectibles, cars, property, stories, memories, videos, and more!
But now you might be thinking: Who exactly should I name as a beneficiary?
You know your situation best, but I can give you a few things to consider.
When someone passes away, at any age, there are often immediate expenses. The average cost of a funeral is $8000, but that doesn’t include other costs that pop up. There might be medical expenses, rent/mortgage, lease termination, house cleaning, junk removal, and storage, just to name a few.
So when you think about your bank accounts, ask yourself: Who is likely to take care of these things for me or my family? Should they have access to some of my accounts so they can do that? Can I trust them to take care of it?
For some people, it’s a spouse or partner. For others, it might be an aunt, nephew, or friend. In many financial accounts, you can divide the account between more than one beneficiary, and name a backup.
If you have other bank accounts, big or small, consider who might benefit from those gifts. If your niece received $1000, could it start a college fund? Or help her buy a car? Maybe the balance of your retirement account will help someone start a business? You won’t have much control from the grave, but if you’ve taken the time to have those meaningful conversations, make the appropriate lists, and even write letters to your family and friends, they are much more likely to honor your wishes.
For other gifts, like stories and memories, ask yourself: Who is the caretaker of the family legacy? Who would like to be? There may already be someone in your family who likes to ask questions, who writes down the family tree, and organizes the family reunions. That person may be honored to add your legacy to the family treasure chest.
Two final tips:
Write everything down so your intentions don’t get lost.
You can change your mind at any time!
Just as you expanded your definition of wealth, expand your imagination about the possibilities of passing on your wealth!