Check your beneficiary designations

Tip of the day: Check your beneficiary designations and keep copies of forms you submit requesting and updating beneficiary designations.

Several years ago perhaps sometime in 2005, Family Member updated her IRA and non-retirement investment account beneficiaries. In order to ensure that the changes were done properly and promptly she personally visited the local office of the Nationally Prominent Investment Firm (for simplicity I'll call it the Firm) where she invests her money. She met with a representative and completed and submitted the necessary forms. Naturally, she assumed that her beneficiaries were changed properly.

Fast forward to September 2008, Family Member realizes that circumstances have changed and decides its time to update her beneficiaries. Now, she can access her accounts on her home computer and make changes on line. She accessed her accounts and checked the listed beneficiaries to learn that not one change she personally requested in 2005 is reflected on any of her accounts. In fact 3 of 4 accounts showed that 0% would be distributed to each of her beneficiaries.

Not surprisingly Family Member was upset and concerned. When she called the Firm to inquire what had happened, they advised her that their records did not reflect her requests from 2005.

Fortunately, Family Member is in good mental health (meaning she has capacity) and has since updated her beneficiaries. This time she will confirm the changes and keep a written record of all documents confirming these important designations. We are hopeful the Firm will do as she has asked.