Estate planning commonly involves making sure a deceased person’s assets go to the intended beneficiaries. There might be other directives present in the will, but the general purpose of a will usually involves distributing assets to the intended beneficiary. The same is true when designating beneficiaries for accounts that would transfer outside of probate proceedings, such as an IRA or a brokerage account. When planning an estate in New Hampshire, the person drawing up a will may wish to consider if he or she is naming the “right” beneficiary.
An example of allocating assets to a beneficiary
A person with a large estate may have two children. One child reaches adulthood and has few dealings with the parent even when the parent needs care. The other child spends significant time and personal financial cost to care for the parent. Because of these circumstances, the “caring child” receives a far more substantial amount of the estate.
While one child might not think the situation is “fair” and expects a 50/50 split, the deceased parent came to a different conclusion. Of course, different clients may select different will or account beneficiary designations. The above example of choosing a beneficiary shows some variables that may factor into the decision process.
Thinking about expenses that others may deal with
Consider another scenario: a business owner realizes that a family member may need to pay high monthly costs to keep the business operating until the time comes to sell the enterprise. A similar situation may develop when transferring property to someone. In this case, the person crafting the will might leave additional funds to this one particular person to cover expenses.
Thinking through estate planning carefully
Anyone taking part in the estate planning process could apply personal decisions and considerations when naming a beneficiary. Discussing concerns with an attorney might prove helpful.