The Twelve Days of Taxmas – Beneficiary Review
As Christmas approaches, Klatzkin is putting a twist on a holiday classic. But rather than filling your head with drummers drumming and golden rings, we’re focused on providing important tax insights through “The Twelve Days of Taxmas” blog series that could help minimize your tax liability.
On the twelfth day of Taxmas, my accountant gave to me an annual reminder to review beneficiary designations for retirement accounts, annuities, and life insurance contracts.
Beneficiary designations should be reviewed at least annually whenever a significant life event occurs, such as birth, death, marriage, or divorce. Beneficiary designation forms should also include a primary and a secondary beneficiary. Failure to update designations could result in unintended tax consequences. Upon death, assets may also be inherited by individuals other than who the decedent desired.
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©2020 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and should not be construed as accounting, tax, or financial advice. Please consult your tax advisor concerning your specific situation.