David Kanani, president of Kanani Advisory Group, shares the important considerations to keep in mind when designating a beneficiary of a life insurance policy.
IRVINE, Calif., May 20, 2022 /PRNewswire/ — According to David Kanani, choosing a beneficiary can be very simple, yet very important in any account that requires it. "If one is married, unless there are very unusual circumstances, your spouse should be the beneficiary, especially if you live in a community property state," says Kanani.
This could be more difficult and needs more thought if you are not married or when choosing a contingent/secondary beneficiary. For example, if you have minor children, it is recommended to have your trust as beneficiary. If you have a disabled family member, you should consider a special needs trust. If you don’t have a trust, as a last resort, you can name an adult family member, i.e., parents, siblings, or any other trusted person. If you name an adult family member, keep in mind that once the proceeds are paid, those funds legally belong to that individual. Therefore, you must have extreme trust that the family member you name understands that the funds need to be used for the intended minor child/children.
Finally, when making your decision, do it as if this account would be paid out tomorrow. Changing beneficiaries can be a simple task. Do not worry about years down the road. Plan as if something can happen tomorrow!
It’s always recommended to consult with an estate planning attorney.
To learn more about Kanani Advisory Group and its holistic financial planning approach, please visit www.kananiadvisorygroup.com
About Kanani Advisory Group
Based in Irvine, California, Kanani Advisory Group is a concierge-based financial services company providing comprehensive and customized financial strategies to clients and businesses. Services include tax planning, retirement planning, estate & legal planning, risk management & insurance solutions, mortgage & real estate solutions, corporate executive planning and business consulting. Specializing in providing a highly individualized and holistic financial planning experience, Kanani Advisory Group works exclusively with reputable and stable financial firms to provide clients products and portfolios they can depend on.
Investment advisory services are offered through Kanani Advisory Group, a Registered Investment Advisor. David Kanani CA License #0B34918, Neda Kanani CA License #0L51510.
SOURCE Kanani Advisory Group