IN Brentwood-Baldwin-Whitehall Winter 2019 | Page 3

INDUSTRY INSIGHT
LEGAL INSIGHT
SPONSORED CONTENT
C O V E L L I L AW O F F I C E S , P. C .
Th e Importance of
Benefi ciary Designation Updates
E
ach of our lives tends to follow a similar
fi nancial path – we work hard to accumulate
wealth in our younger years, and typically
wait until our later years to plan our Estate.
In between, life happens. The people we listed as
benefi ciaries when we set up our savings accounts,
IRAs and life insurance policies may not be the same
people we want to receive those assets via our Last
Will and Testament. Unfortunately, the failure to
revise and update your benefi ciaries may end up
(unintentionally) leaving a trail of confusion and hard
feelings following your death. In some cases it may
not even be the estate distribution you wanted.
“We often encounter situations where people have
a life insurance policy or a bank account in which
only one of their children is listed as a joint owner or
benefi ciary,” said Joe Covelli of Covelli Law Offi ces.
“Their Last Will may say that they are attempting
to bequeath their estate ‘equally to all my children,’
however the benefi ciary designation will overrule
any provision in your Will regarding life insurance and
retirement accounts. The savings account you would
like to be divided between your three children would
go directly to that one child. We see benefi ciary
designations made by Dad or Mom some years ago,
and never changed. It is more common than you
think. After you purchase a life insurance policy, and
pay off the premiums, how often do you go back
and review the related documentation? Most people
forget about the subject, and do not update their
benefi ciary designations. Likely, your circumstances
have changed, and your desired benefi ciary has
changed too.”
Media
Trib Total
d
oice Awar
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Readers’ C
orney
“Best Att
2019”
Covelli added that he’s also seen cases where
young adults list their parents as benefi ciaries on
life insurance policies because they do not yet have
families of their own. If those young adults pass away,
the insurance benefi ts will go to their parents as
designated, regardless of whether they later have a
spouse or children of their own.
Maybe your intended benefi ciary is a minor, and
his/her share will be held in Trust until reaching a
certain age. Comprehensive estate planning will
enable you to control the terms of that Trust.
“People go through all kinds of changes
throughout their lives… they get married, have
children, grandchildren, get divorced, etc.,” Covelli
said. “So you need to review your investments and
assets—with an eye toward comprehensive and
cohesive estate planning—to lessen the burden on
your loved ones after you pass away.” An experienced
Estate Planning Attorney can assist you in making
these determinations.
Covelli Law Offi ces, a Trib Total Media Gold Award
winner for Best Attorney in Year 2019, is here to help
you understand all of the legal issues relating to your
estate planning. At Covelli Law Offi ces, everyone
receives a free 30-minute consultation. At your
consultation, an attorney will advise you as to what
role they can play in your situation to help the most,
and give you an up-front cost for their services.
For more information on Covelli Law Offi ces, go to
Covellilaw.com or call 412.653.5000. It is located at
357 Regis Avenue (across from the Pleasant Hills-West
Miffl in Post Offi ce)..
Joe Covelli has over 38 years of legal
experience and is a “5 Star Professional
Award” recipient. He is a member of the
National Academy of Elder Law Attorneys,
and he heads a team of attorneys with
expertise in several areas of the law. For
more information, call 412.653.5000, or visit
www.covellilaw.com.
FREE Consultation | Call Today! 412.653.5000