A Beneficiary Clause Can Help Save Money On Your Estate

Do you know that a beneficiary clause can help save money on your estate? Often clients need to lower their potential taxable estate and there are many ways to do so, and a beneficiary clause is a relatively easy way. One area in which there is a beneficiary clause is  in a life insurance policy. The beneficiary clause or designation provision permits the policy owner to name anyone as primary and secondary beneficiaries. The policy owner usually may change the beneficiaries at any time.

Life insurance can be used to fund an Irrevocable Life Insurance Trust (ILIT) to take your life insurance out of your estate thereby potentially saving thousands in estate taxes. Investments or retirement funds, such as annuities or IRA's typically have a beneficiary clause that can be used to name a primary or secondary beneficiary. This may avoid probate and thus save the estate additional costs.

Finally, you should periodically check your beneficiary clause in all your retirement accounts, life insurance and similar type of assets. Without doing this, you may find that your designated beneficiary is not who you think it should be. For example, if you have divorced, remarried or had children since your retirement plan account was established, you should update your beneficiary clause. If a long time ago you named a relative as your beneficiary, the relative may be deceased. Updating your beneficiary clause will prevent confusion and disputes and provide the estate plan your desire.

I have many years of experience successfully working with and advising clients in creating and executing plans that effectively express their personal desires regarding the disposition and protection of assets. I do this while providing potential tax advantages and security for family and beneficiaries. Regardless of the size of an estate, most adults — young and old — and their families benefit greatly from having a well-prepared estate plan consisting of documents such as a: Last Will, Health Care Proxy, Power of Attorney and Living Will.

To contact me regarding any questions or concerns call (212) 355-2575 or e-mail