5 reasons why you should add beneficiaries to your accounts right now

by James Royal, Investing and wealth management reporter

May 27, 2022

Here are five reasons why you should consider adding beneficiaries to your accounts right now, especially in the midst of the coronavirus pandemic where thousands of families are facing unexpected losses of life as a result of the outbreak.

1. You want the heirs of your choice to receive your assets

By naming your beneficiaries, you ensure that your money goes where you intend for it to go. That could be to a relative who really needs the financial assistance, a charity that’s close to your heart or whomever you want the money directed to. Without clear directions as to your wishes, executors or the state will follow only what the law says in distributing your assets.

“When you name beneficiaries you ensure that after you die, your assets go to the people or charities you choose,” says Stephen Akin, a registered investment adviser at Akin Investments in Biloxi, Miss.

By naming a beneficiary, that person becomes “first in line to receive assets upon your death,” says Akin, noting that it’s not necessary to be married to the beneficiary.

While spouses often leave all their money to each other, naming a beneficiary also means that your assets will go to whom you want and you won’t have to rely on the good faith of a spouse.