Financial Wellness

The Time is Now to Introduce Your Beneficiaries to CEFCU

Naming a beneficiary on your accounts — savings, insurance policy, retirement plan — is a small but important step that carries great significance in your financial and estate planning. Not only does it ensure that assets are distributed in a timely manner, but also establishes an important relationship between your heirs and your trusted financial institution.

You can list an individual or trust as a beneficiary of your account. If the account already has a named beneficiary, that asset transfers to the beneficiary (or beneficiaries, if more than one) after the death of the account owners. If no beneficiary is named, your assets may become part of your estate, which will require going to court for a formal probate administration to change title from the decedent to the beneficiary.

“There are three major ways to have a nonprobate transfer. These are transfers via: 1) trust; 2) joint tenancy; and 3) beneficiary designation,” said estate planning attorney, Gerard V. Kassabian, J.D., LL.M. “I often see accounts that either have no beneficiary or a predeceased beneficiary that forces the asset into a public proceeding that is both costly and takes a significant amount of time. A simple beneficiary update would have avoided a big headache.”

In the eyes of probate court, your beneficiary forms act as testamentary documents and override the actual will. As such, it’s important to review and update your beneficiary designations when you or loved ones experience a major life event, such as a birth, death, marriage or divorce.

The most successful transitions from account holder to beneficiary take place when beneficiaries have an existing relationship with CEFCU. As member/owners, your heirs will value the importance of CEFCU long before they receive their inheritance.

Whether you inform your heirs or keep your beneficiary information confidential, it is important to progressively prepare your beneficiaries through education, communication, and credible sources prior to the transfer of wealth. Your beneficiaries should understand the relationships you’ve maintained and nurtured.

With CEFCU’s commitment to financial value, competitive dividends on liquid assets, as well as its strength, safety and security, it’s no wonder why generations of members continue to extend the benefits of CEFCU membership to family. The most successful transitions from account holder to beneficiary take place when beneficiaries have an existing relationship with CEFCU and preserve membership privileges after the death of the qualifying member. As member/owners, your heirs will value the importance of CEFCU long before they receive their inheritance.

Is it time for a review of your beneficiaries?

Review your designations and contact CEFCU for assistance:

• If you have not designated a beneficiary and wish to do so
• If beneficiary contact information needs to be updated
• If you recently created a trust and want to add or change your beneficiary to a trust
• If you do not remember if you have designated a beneficiary

We turn to you for the first introduction and look forward to serving our future members with the same trust and loyalty we’ve served you!

• Family Membership
• Money Management

 
This content is for informational purposes only. Please consult a financial, legal, or tax professional regarding your specific situation.