When it comes to financial planning, few things are as simple—yet as critical—as naming a beneficiary. At Brightside Financial, we help you to avoid this mistake. We’ve seen how families face unnecessary stress, delays, and financial loss because this basic step was missed. Here’s what happens when you don’t have a beneficiary listed, and what you can do to avoid it.
What Happens If You Don’t Have a Beneficiary?
If you pass away without a named beneficiary on key accounts, your assets may go through probate court—a legal process that can take months (or longer) and cost your loved ones thousands in legal fees and court costs.
Consequences include:
- Delayed access to funds
- Public legal proceedings
- Potential family conflict
- Higher administrative costs
- Distribution according to state law—not your wishes
What Happens If You Do Have a Beneficiary Listed?
When you name a beneficiary:
- Assets transfer quickly and directly
- Your family avoids probate
- Your wishes are honored
- It gives your loved ones peace of mind during a difficult time
Naming beneficiaries is one of the easiest ways to protect your legacy.
Accounts That Should Have a Beneficiary Listed
Make sure you’ve named a primary and contingent beneficiary on the following accounts:
- Life insurance policies
- Retirement accounts (401(k), 403(b), IRA)
- Pension plans
- Annuities
- Payable-on-death (POD) bank accounts
- Transfer-on-death (TOD) brokerage accounts
Financial Implications of Not Naming a Beneficiary
Failing to name or update a beneficiary can:
- Force assets into probate
- Trigger avoidable taxes
- Increase legal expenses
- Delay funds needed by your family
- Result in unintended people inheriting your money
Keep Your Beneficiaries Up to Date
Life changes—your beneficiary designations should too.
Review annually or after life events like:
- Divorce or remarriage
- Death of a spouse or loved one
- Birth or adoption of a child or grandchild
- A falling out with a previously named beneficiary
Go a Step Further With a Trust
Want even more control over your estate? Consider setting up a trust. A trust helps:
- Bypass probate
- Protect assets from creditors
- Specify how and when funds are distributed
- Keep your affairs private
At Brightside Financial, we are not attorneys and cannot offer legal advice, but we can guide you through the process of setting up and funding a trust. We also provide a helpful tool to list and track your assets, along with clear instructions on which accounts and property should be retitled in the name of the trust.
It’s important to understand that having a trust is just the first step, it must be properly funded. This means assets like real estate, vehicles, and some financial accounts need to be legally transferred into the trust’s name to ensure they’re protected and avoid probate.
Let’s Make Sure Your Family Is Protected
✅ Schedule a free consultation with Brightside Financial.
✅ Review your beneficiaries.
✅ Learn if a trust makes sense for your situation.
Your legacy deserves to be preserved. Let’s make a plan.
