Three Common Beneficiary Designation Disputes

Designating beneficiaries is critical when determining who will inherit your property after you pass away. Proper beneficiary designations can make sure that your insurance policies, retirement accounts, and other assets are distributed according to your wishes. If you do not clearly specify who your beneficiaries are, it can create confusion and result in possible disputes among your family members. It can also lead to certain challenges of your will or other estate planning documents. Below, our Daytona Beach probate lawyer explains the disputes that can delay the administration of your estate and incur additional costs for your family.

Vague Beneficiary Designations 

When designating beneficiaries, it is essential that you are very clear about your wishes. Vague designations can make distributing your assets much more complicated for your loved ones. For example, if in your will you only state ‘my children,’ it can create disputes. This is particularly true if you have stepchildren or adopted children. If you also use a name that was a nickname, or a name that could be applied to multiple people, this can also lead to disputes and confusion. Always clearly state the full name of any beneficiary you want to receive your property.

Failing to Update Beneficiary Designations 

Beneficiary designations that are outdated can result in property distribution that does not align with your current or most recent wishes. If you have experienced a change in circumstances, such as a divorce or remarriage, you should update your estate plan to ensure it still reflects your preferences. If you fail to do this, your former spouse, or their family members, may receive property you intended to leave to other people.

Even if you are in the middle of a divorce, you should update your beneficiaries in your estate plan. Otherwise, your spouse will not be stricken from your plan as they would be if your divorce was finalized when you passed away.

Conflicts Among Beneficiaries 

Disputes among beneficiaries can arise if there are questions about the order of precedence. Your primary beneficiaries are the first to receive any of your property if you pass away. However, if those beneficiaries have passed away and are still included in an estate plan, other beneficiaries may inherit your property instead. It is important to update your beneficiaries regularly to ensure they still reflect your wishes and to avoid conflict among potential heirs.

Our Probate Lawyer in Daytona Beach Can Review Your Plan 

There are a number of disputes that can arise when you do not regularly review and update your beneficiary designations. At best, these disputes can make things harder for your family and in the worst case scenario, it may invalidate certain elements of your estate plan. At Bundza & Rodriguez, our Daytona Beach probate lawyer can help you draft a plan that will not result in disputes and that will ensure your final wishes are upheld. Call us today at 386-252-5170 or chat with us online to schedule a consultation with our experienced attorney and to get the legal advice you need.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0733/0733ContentsIndex.html