Happy summer! As we are in the seventh month of the year, let’s dive into your backup planning. In my humble non-legal opinion, this is one of the most important aspects of your overall planning strategy.
Backups apply across the board, from your legal documents and entire digital life to your files, systems, and the people in your life. Your beneficiary designations are an important backup. Today, we’ll focus on beneficiaries and your financial accounts.
Photo by Cafer Caner Şavli: https://www.pexels.com/photo/helping-hand-reaching-over-a-ledge-outdoors-38131267/
Beneficiaries
Have you recently checked who your beneficiaries are? Please do! I’ve seen too many disappointments after the fact when previously named beneficiaries are different than what you’d choose today or are no longer with us. Double-check your life insurance policies, retirement accounts, payable-on-death bank accounts, and living trusts to make sure you’re up to date.
Let’s explain beneficiary terms. 1) A primary beneficiary is the first person or entity designated to receive assets upon your death. 2) A secondary beneficiary (or contingent beneficiary – aka, your backup for your backup) is the 2nd person named in case the primary beneficiary is not available. By naming a secondary beneficiary, your assets are distributed according to your wishes, even if the primary beneficiary is not available.
Financial Accounts
I’ve made a pact with myself to review how I’m set up to pretend I’m someone else to see how easy it is to “be me”! Have you ever done this? Whether you’re flying solo or with someone, it’s a way to organize for today and be prepared for the tomorrows ahead.
I’ll start by going through the financial aspects of life and consider the if/then as it applies to anything and everything? Let me give you an example. Start by collating all accounts that need to be paid and the accounts where money is.
Ask if these accounts are set up to authorize someone else to pay, if ever needed. Is there a “someone else” who is willing and able to pay? Who is the backup for the person you designate? If so, are your people aware of the current account details so they can help?
Photo by Nguyen Ngoc Tien: https://www.pexels.com/photo/yellow-flower-stairs-28171322/
Extra Steps
Beneficiaries and financial accounts take a little extra “elbow grease”, especially when it comes to backups for the backup. I’ve read so many pros and cons about how to handle this. Name a person, name an organization, name a trust, what if someone is a minor, etc., etc.
If you have a Trust, talk to your estate planning attorney and talk with your financial institutions. The Trust must be crafted correctly for your financial life to run smoothly, especially in the case of incapacity.
Each financial institution has specific guidelines it must maintain to protect your account from fraud and abuse. Arrange a meeting to explain what you want, why you want it, and keep at it! I know in my case, it took me a bit to explain what and why, as it did not fit into their “norm”. I kept at it and was able to satisfy all!
Ready Room
During the summer, I hesitate to give myself huge projects! Once September arrives, I’m ready.
Speaking of “ready”, I’m planning to launch what I’m calling the Ready Room this fall. An online Zoom every couple of weeks where we can gather to work on preparation tasks, where you can ask questions, and make good progress on your readiness. If this sounds like you and you’d like more information, let me know by sending me an Email.
Learn more about my work @ The Living Planner. For pre-planners who would like information about overall planning, my book can help you prepare. The 2026 edition of Living Planner What to Prepare Now While You Are Living © can be purchased HERE.
Quote of the week: “If we can alleviate someone’s fear, that is the greatest gift we can offer them.” Thich Nhat Hanh
Enjoy the long days of summer! Lynn
#Can’tPredictCanPrepare #CareForPeopleCareForBusiness