Carole Lerner purchased annuities from an insurance company that were intended to provide tax-deferred growth on her money until sometime in the future when she might need the funds. In the case that she died before spending the annuities, she named a beneficiary to inherit the balances.
A few years after purchasing the annuities, Carole decided to change the beneficiary. The insurance agent she contacted then gave her the company's official change-of-beneficiary form to complete-noting that she needed to sign it to make it official. Carole completed the form to reflect her revised estate plan, but unfortunately she mailed it back unsigned.
The insurance company mailed it back to her, indicating that it must be signed before the change could be effective. Sadly, Carole was hospitalized, fell into a coma and died before she could sign the returned form.
So What Happened?
- After Carole's death, her newly desired beneficiary went to battle with the original beneficiary.
- Even though Carole had taken steps to begin the process of changing her beneficiary, she hadn't signed the company's required form. Therefore, the insurance company properly paid the original beneficiary-Carole's revised wishes were not fulfilled.
|
|
Request our free guide on directing your assets to the people and causes you care about. |
Avoid Making a Similar Mistake
Be sure to review your beneficiary designations regularly and pay close attention to details required to change a beneficiary. Consult with an estate planning attorney if you have questions about how to create an estate plan or how to update your existing plan.
Contact Us
We would be happy to assist you in your charitable planning. Contact our Development Office at 323-761-8704 or development@jewishfoundationla.org to learn more about options that may work for you.
These articles are designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the editor and contributors are not engaged in rendering legal, accounting or other professional services. Therefore, the contents should not be applied as legal or financial advice.