How to choose beneficiaries when planning an estate? How many beneficiaries can be designated? What are the precautions?

Flexibility to adjust beneficiaries

You can change your beneficiary list at any time. For example, if your marital status changes or you have a new family member, you can contact the insurance company to fill out the change form and ensure that the beneficiary information is always accurate and up-to-date.

How to Write a Beneficiary Letter

Selecting beneficiaries for your life insurance policy is only one part of estate planning. Once you’ve identified your beneficiaries, the next step is to provide them with instructions for handling your estate. A beneficiary letter, or letter of instructions, can help your loved ones find, distribute, and use your estate. Note that unlike what is specified in a will, the instructions provided in the letter are not legally binding. Here are the key steps to writing a beneficiary letter:

1. List important contact information

Be sure to provide detailed contact information for anyone involved in the distribution of your estate, including the name, phone number, and address of your insurance agent, financial institution, trustee, broker, attorney, or accountant. This will allow your beneficiaries to quickly contact the relevant parties.

2. Provide clear and specific instructions

If the beneficiary inherits the property, please explain how the property is obtained. For example, if the car is left to a child, please indicate where the car and its title are stored and provide relevant information needed to access the car (such as garage code, key location).

At the same time, you can list your assets with their estimated values ​​and explain how to distribute lower-value items (such as personal effects or heirlooms). These guidelines can be of great help to your loved one during this period of mourning.

3. Cordial Speech

Beneficiaries are usually your very important relatives or friends. When writing letters, please express your expectations and gratitude as if you were talking to them. This may be your last words to them, so please write carefully.