What Are Beneficiary Designations in a Georgia Estate Plan?

Estate planning in Gwinnett County and throughout Georgia has many different components, and the specific aspects of an individual’s estate plan will depend in part on their particular needs and circumstances. At the same time, some documents and tools are typically part of most estate plans in the Norcross area, including beneficiary designations. What are beneficiary designations in a Georgia estate plan, and do you need them? In short, if you have any insurance policies, bank accounts, retirement accounts or pensions, or annuities, you will likely want to discuss beneficiary designations with your Georgia estate planning lawyer. The advocates at Bowman Law Firm can provide you with more information about beneficiary designations more broadly, and we can speak with you today to discuss designating beneficiaries as part of your estate plan.

What is a Beneficiary Designation? 

In short, designating a beneficiary is a process through which you name a person who will receive an asset you currently own upon your death. Beneficiary designations are important because they allow beneficiaries to receive assets relatively quickly without those assets having to be probated. It is important to understand that a designated beneficiary is not the same thing as an heir in Georgia — an heir receives property from a deceased person after it has passed through the deceased estate and has gone through the probate process, whereas a beneficiary receives an asset directly.

You can designate an individual, or you can designate an entity, such as a charity or a trust.

Different Types of Assets Where Beneficiaries Can Be Designated 

Several different types of assets allow for a beneficiary designation in Georgia, including the following:

• Insurance policies, including life insurance;
• Annuities;
• Retirement accounts (including 401(k) accounts and many pensions);
• Bank accounts (through a payable-on-death, or POD, beneficiary designation, including checking accounts, savings accounts, CDs, and more); and
• Real estate (through a transfer-on-death, or TOD, deed).

Direct Beneficiaries Versus Contingent or Alternate Beneficiaries 

The type of asset will determine whether or not you can name just one or multiple beneficiaries. It will be critical to discuss this with your estate planning lawyer in Norcross. For many types of assets that permit you to designate at least one or sometimes multiple beneficiaries, you may also be able to designate a contingent or an alternate beneficiary. Why is it important to do so? In short, if a designated beneficiary dies and you do not name a new beneficiary, and then you pass away, the asset typically would then go to your estate and would go through the probate process. By designating a contingent or alternate beneficiary, you can ensure that the party of your choosing receives your assets.

Contact Our Gwinnett County Estate Planning Attorneys for Assistance 

Identifying beneficiaries is an important component of estate planning for most residents of Norcross and throughout Gwinnett County. From life insurance and retirement account beneficiaries to those designated through payable-on-death designations and deeds in Georgia, it will be important to identify beneficiaries and contingent beneficiaries so that your assets can transfer smoothly without needing to go through probate. One of the Gwinnett County estate planning lawyers at Bowman Law Firm can assist you with beneficiary designations and every other component of your estate plan. Do not hesitate to get in contact with us to learn more about how we assist Georgia residents with their estate planning needs.

Sources:

law.justia.com/codes/georgia/title-33/chapter-15/article-4/section-33-15-61/

law.justia.com/codes/georgia/title-44/chapter-17/section-44-17-2/#:~:text=(c)%20To%20accept%20real%20estate,description%20of%20the%20real%20estate