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Who should you choose as beneficiaries?

On Behalf of | Dec 6, 2021 | Estate Planning

Selecting beneficiaries for your estate in Montana is a process that requires careful consideration. Sometimes, choosing who to name can seem impossible and overwhelming.

Knowing some strategies for naming beneficiaries may improve your confidence. Over time, you may need to update or change your list.

Determining a need

Whether single, married, wealthy or with few assets, naming beneficiaries to your estate can give your plan purpose. According to The Motley Fool, a question you can ask to help you determine probable beneficiaries is, “Who could use financial assistance?” Perhaps you have grandchildren who could put monetary donations toward a college education. Maybe you have a spouse who will need financial support to continue raising your children.

You could also consider naming a charity as a beneficiary or donating money to a scholarship fund. Identifying your goals and then determining who could benefit the most from your contributions can help you narrow down your list of options.

Identifying responsibility

When naming beneficiaries, assessing each entity’s maturity and responsibility will play a crucial role in determining the way you gift your money. For underaged or disabled beneficiaries, you may want to implement a trust fund or other form of controlled distribution. You can also talk with your beneficiaries about your expectations for the use of inheritance, particularly if you wish for the money to go toward a certain purpose.

While you do not need to disclose every detail of your estate plan, you can share your intentions with your beneficiaries. Doing this may improve their understanding, reduce the risks of inheritance disputes and encourage unity among heirs.