Ensure Your Financial Legacy

If you're like most people, the last time you reviewed your beneficiary information was probably when you acquired benefits through your current employer. If that was 10 years ago, a lot could have happened since then.

Here are some common life events that may trigger a need to adjust your beneficiary information:

• Marriage
• Divorce
• The birth or adoption of a child
• Death of a spouse or child

Be sure to look at your entire financial picture. Besides your 401(k), what other types of assets do you have? Check out the list below to help ensure you are addressing your total financial picture:

• Trust accounts
• 401(k)
• Qualified retirement accounts such as an IRA
• Insurance policies • Deferred compensation plans • Custodial accounts

Not regularly updating your beneficiary designations can have unintended consequences. As a general rule, upon your death these benefits pass to the named beneficiary or "designated beneficiary" of the asset – they do not pass through your will or revocable trust. To better understand these consequences, keep in mind the following information:

• If your spouse is named as primary beneficiary and you get divorced, he/she is still the beneficiary. Unless you change your beneficiary designation, your ex-spouse is still your primary beneficiary – not necessarily a situation you would want, especially if you remarry. It may be a good idea to file the change of beneficiary when you file for separation, so that it isn’t overlooked during the divorce process.

• You may want to review accounts or policies that have a minor listed as the beneficiary. Unless you name the trust created for your children as beneficiary, your children will get access to all the funds at the mature age of 18 or 21, depending on the state. If you want to name your minor children as beneficiaries, you may want to consider having a trustee and naming the children's trust as beneficiary. Most trusts will not disburse money to a minor, and it will ensure the money is managed properly.

• If you did not designate someone as your beneficiary, your account will go to your estate and will be distributed in accordance with state laws. Depending on the state in which you live, probate can be a time-consuming and expensive venture for your heirs. Do you really want state law determining who is most important to you?

Before you forget, make sure you complete a review of your beneficiary designations. The time you spend now can help ensure your financial legacy. If you have any questions about planning for your financial legacy, talk to one of our Financial Consultants. To schedule a complimentary review, simply:

• Call us at 800.328.8797, ext. 6077
• Email us at financial@dcu.org
• Visit us at dcu.org

DCU Financial
220 Donald Lynch Boulevard, Marlborough, MA 01752 • 800.328.8797, ext. 6077 • Email: financial@dcu.org
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