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Managing Contractual Assets

August 3, 2021

Video Transcript

Hi everyone, I’m Jessica Rafferty of QuatriniRafferty welcome to another Legal Tip Tuesday. Today I wanted to talk to you about an aspect of your estate plan that is often overlooked. That aspect is your contractual assets. Remember how we talked about how things get passed through your will or by contracts, and if they pass through a contract that company is never going to look at your will to make sure the beneficiary you listed on that contract matches what your will says. 

So, when you come into do Estate planning with me, I very much encourage people to review your life insurance policies and any investment accounts you may have, pensions and that sort of thing. of thing. Make sure that the beneficiaries you have listed on those contractual accounts mirror what you are doing in your will if you wanted to. So, there are some instances where is makes sense that those things do not match. And I will give you a couple of quick examples and I will go into this in more detail on another episode. But one example would be you if and your spouse are coming into a marriage in which you have children from a prior marriage, sometimes people get nervous that their spouse could potentially cut their children out of the inheritance if they died first, that’s a very real possibility and I’ve seen that happen. As I’m sure you can imagine, but one way to sort of guard against that and make sure your children who inherit from you in some manner, would need to list them as beneficiaries on that contract. It’s like I said, they’re not gonna look at that will so those kids would get whatever you are providing for them in that contractual policy. So that’s one instance, other instances could be if you have an issue with Medicaid where one of the spouses is in a long-term care facility, you may not want that spouse to receive that because of Medicaid will take it.

So those are just two very quick examples, like I said, I will get into that in more detail, but at the very least my tip for you today is to pull out those policies and make sure you have updated beneficiaries listed on there, because very often I have seen that somebody has filled that out years ago and they are just not updated. So, until next time I hope you all have a wonderful day, again I am Jessica Rafferty and thanks for watching another Legal Tip Tuesday.