John understood the importance of basic estate planning, so he made sure his wife was listed as the primary beneficiary of his retirement plan. After his wife passed away, John intended for his adult children to inherit his retirement plan but never changed his original designation. When John passed away, this simple oversight caused his entire retirement plan to become part of his estate, and his children had to endure a frustrating probate process.
Nobody likes to think about it. But a little planning can help make sure your assets are distributed the way that you intended. Here are some tips for ensuring that your beneficiaries are accurate and up to date:
Confirm your beneficiaries. Make sure everyone you intend as a beneficiary is designated as such. Your designation takes precedence over your will, so an outdated beneficiary could inherit your retirement plan money, no matter what your will says. If you’re not sure of your designee(s), contact GuideStone by phone or email. (For privacy reasons, beneficiary information is not available online at MyGuideStone™.)
Update your designations after any change in family status. When your family changes, one of the first things you should do is update your beneficiaries. So whether you marry, have children, experience a divorce or suffer the loss of a loved one, make sure that your beneficiary designations are updated accordingly. Most financial firms do their best to make this an easy process. In fact, Money magazine says, “Changing beneficiaries is easier than changing the filter in your coffee pot.” To name a new beneficiary, all you’ll need is the person’s birth date and Social Security number. Most beneficiary forms are available online, including forms from GuideStone. Like most financial firms, GuideStone requires a special waiver for married customers who assign someone other than their spouse as their beneficiary.
Review your beneficiary selections annually. Most people keep the same beneficiaries for many years, so it may help to review your selections annually. Because so much time can pass between changes, it’s easy to overlook this simple update. Make it easy and mark your calendar now.
To request a Beneficiary Designation Form or to check your retirement plan beneficiary, contact GuideStone at 1-888-98-GUIDE (1-888-984-8433) between 7 a.m. and 6 p.m. CST Monday–Friday. You can also email your request.