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 h 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