Planning for a future after you die is never fun, but it is one of the best ways we can protect and help the ones we love.

Choosing the right legatees to your estate is one of the simplest and most effective ways to accomplish these goals. Below are some of the most frequent places people look when selecting beneficiaries.

Partners

Spouses often chose each other. It is the simplest way to provide them with the means to live comfortably and if necessary, care for any children. However, it is important to remember that no family is the same, and therefore no two estate plans can be the same. The health of a spouse, potential future expenses, the status of all children (including those from a previous relationship), parents, or past spouses must all be considered.

Children

Many people will often leave their estates, at least in part, to their children. This allows for everything from supporting their future education to providing funds to allow them to care for a surviving parent.

Siblings and Parents

People that are close to their siblings or parents will at times name them as beneficiaries. This is often done in situations where surviving children and/or partners are unable to care themselves.

Trusts

Trusts allow for more control over how money left is spent or distributed. While these arrangements can have more complex tax considerations, they can be used to ensure money is spent as you would wish instead of leaving it your survivors’ or local court’s whims and ideas.

For example, if a widow has an income restriction due to social security benefits they receive, a trust can help ensure they are supported and remain qualified for that benefit, or a teenage child cannot spend money saved by their parent for college on a new car.

Charity or Other

Other parties such as charities, alma maters, friends, and organizations can be named beneficiaries, but in these cases, it is especially important to consult a local estate planning attorney to ensure your wishes are followed, you will not create liability for your estate or family, and taxes are appropriately considered.

Selecting the correct beneficiaries of your estate is a task nobody relishes, but it is nonetheless important.

Having a properly drafted estate plan allows you piece of mind that your family and loved ones will be well cared for and your wishes will be followed. Get started »

Planning ahead is a gift to your loved ones!

Richard K. Abraham, Esquire

Mr. Abraham is an experienced attorney and founding member of the Law Firm of Abraham & Bauer. The Towson, MD office of the firm concentrates its practice in Estate Planning, Elder Law, Probate, Medical Assistance (Medicaid), Guardianship, Asset Preservation and Fiduciary Representation.

He is an active member in a number of professional organizations that focus on law, the senior community, and estate planning. He works with clients in Central Maryland, especially in Towson, Hunt Valley, Lutherville/Timonium, Parkville, White Marsh, Bel Air & Northern Baltimore City.

Schedule a consultation to help you and your loved ones.