Importance of Naming Beneficiaries by Richard Cayne Meyer

Previously, Richard Cayne of Asia Wealth Group Holdings has spoken about the importance of deciding who your beneficiaries will be in regards to specific investment accounts and just what a significant and integral part of estate planning this process is.

Of course, there’s a lot more to planning what happens to your estate in the event you should pass than simply jotting down a spouse or child’s name on some form. “Too often, many people treat the naming of the beneficiaries to their investments as an nothing more than afterthought,” explains Richard Cayne of Meyer International in Bangkok Thailand. “However, this relatively simple process is a critical part of your estate plan.”

Be specific when naming beneficiaries

As Richard Cayne puts it, simply saying “my estate” or “my spouse” or “my children” is not going to be enough. While you may have a clear idea of what you want, there may also be far more required of you by the financial institutions involved. The last thing you want is to inadvertently send your heirs through the probate process. Even worse though, is the possibility of familial conflicts, particularly if you have more than one child or have been involved in more than one marriage.

It’s also important to understand that contingent, second tier beneficiaries are allowed by most beneficiary facilities. It’s important not to forget those names, in order to allow for added flexibility among your heirs. Let’s say, for example, that your husband or wife want your children to receive their benefits right out. In an instance like this, naming your kids as contingency beneficiaries will allow your spouse the ability to have the beneficiary institution pay the money out directly with little to no hassle.

When you may need to consider a trust

Sensible or not, even the most judicious among us needs to consider the potential consequences of our actions, says Richard Cayne. For example, You may have two separate accounts and decide to name each of your children a beneficiary to one, respectively speaking.

May seem fair to you, right? Maybe not so much to them. But Richard Cayne will tell you that one must also take into consideration that minor children or dependent adults may be better off not receiving all their funds directly. A trust fund may be a better pathway to take in this situation. Or you may not need a trust at all, as some institutions have mechanisms that allow for the provision of distribution instructions.

Do you know the tax consequences?

Oftentimes, says Richard Cayne, beneficiaries will receive a full payout from investment accounts, unless otherwise instructed. Unfortunately, this can sometimes cause your heirs to have to navigate arduous and unnecessary tax burdens. In fact, what you intended to bequeath to your loved ones may indeed create more problems than benefits. As stated before, the entire process may be more easy with a trust in place

Regularly review and update your estate plan

Once you have all your beneficiaries named to your investment accounts, and you’ve made your decisions regarding tax implications and distributions, it’s time to review it again. If not regularly, then at least during intervals that involve major life changes, such as births, deaths in the family or career changes. In the event that such changes should occur, you may find yourself in a position where certain ameliorations need to be made to your estate plan.

Get professional advice with your estate planning

Naturally, there is a lot to consider, especially when taken into account the fact that nobody wants to think about their own demise, but if you genuinely care for your family and loved ones, the lifetime you’ve spent developing investments is something you want to be sure that the assets of which are a benefit to them. To help smooth this process, consulting with a trusted financial expert like Richard Meyer Cayne can help you to get a thorough review of your estate plan to ensure that the best plan of action is taken for you and your family.

Richard Meyer Cayne

Richard Meyer Cayne is head of Asia Wealth Group Holdings, Wealth Group Holdings ltd, Meyer International ltd, Meyer Asset Management ltd and the Meyer Group of Companies. Originally born in Quebec, Canada, he spent years in Tokyo, Japan before relocating to Bangkok, Thailand, where he currently resides. He has been a preeminent expert in wealth management, wealth management planning solutions and financial planning. He has assisted countless individuals in modern portfolio theory and always puts the business interests of his clients first. All of his companies can be found on the London, UK stock exchange and he is world-renowned for helping high net worth families create innovative international tax and business solutions to their respective financial situations.