Nerdwallet
Updated July 18th, 2024
A beneficiary receives some or all of your money, property or other assets when you pass away. Beneficiaries can be any person or organization, or even a trust.
Key Takeaways
- Beneficiaries should be designated for all of your important assets. These include life and other insurance policies, retirement and investment accounts, property and other goods in your estate.
- Insurance policies and retirement accounts will prompt you to designate a beneficiary when you create the account. For all other property, such as real estate and investment accounts, you’ll need to name your beneficiaries and specify what they’ll receive in your will.
- If you don’t designate a beneficiary, your estate automatically becomes the beneficiary and your loved ones could go through a time-consuming probate process to determine where your assets go.
Most accounts, such as life insurance and retirement accounts, prompt you to name a beneficiary when you open the account, but you can fill out a form online or in person to designate or change your beneficiaries at any time. Contact your insurance provider or financial institution directly to request the necessary forms.
