Trust Designation
If you intend to designate a trustee as a beneficiary, you must have documentation to create a trust. A trust is created by signing a separate trust agreement or having a will with trust provisions.
Naming An Estate As a Beneficiary
In many cases, naming your “estate” as a beneficiary will limit options regarding taxation and distribution at the time of your death. Consult a tax advisor before naming an estate.
Spouse As Primary Beneficiary
Unless your spouse consents via notarized waiver, you cannot designate someone else as the primary beneficiary for your account. If you are single and become married, your new spouse becomes your primary beneficiary by default.
Divorce/Legal Separation
Consider updating your beneficiary designation in the event of divorce or legal separation.
Additional Children
Update your beneficiary designation any time you have additional children. The beneficiary designation does not automatically update as your family expands.
Beneficiaries Must Survive You
In order for designated beneficiaries to receive your account, they must survive you. In general, the plan will pay to primary beneficiaries living at your death. If no primary beneficiary survives you, it will pay to contingent beneficiaries. If you wish to have your account paid to your beneficiaries by representation, (for example, if your child predeceases you and you wish his/her share to be given to the deceased child’s children — your grandchildren) then indicate the words “per stirpes” after each designated beneficiary’s name.
Beneficiary Designation Questions
If you have any questions regarding the effect of beneficiary designation, you should seek the advice of your attorney.
Manage Your Beneficiaries Online
Employees are encouraged to review their beneficiaries online. Follow the steps below to add or modify your information.
