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03-28-2019, 04:35 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Location: Chicago
Posts: 1,154
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contingent beneficiary
I don't know why I'm stuck on this one but here goes. If my primary beneficiary passes, do I, as the account holder need to update my contingent beneficiary to primary or can I leave this as is?
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03-28-2019, 04:40 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Nov 2011
Posts: 3,877
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Quote:
Originally Posted by ripper1
I don't know why I'm stuck on this one but here goes. If my primary beneficiary passes, do I, as the account holder need to update my contingent beneficiary to primary or can I leave this as is?
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AFAIK you can leave it as is if you have documentation of the passing of the primary beneficiary, such as a copy of the death certificate.
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03-28-2019, 04:41 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Location: St. Charles
Posts: 3,903
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I would imagine you could leave it as is, but I expect there would be more paperwork to collect (proof of death, etc.). Updating makes far more sense, to me.
__________________
If your not living on the edge, you're taking up too much space.
Never slow down, never grow old!
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03-28-2019, 04:58 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,202
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I would update it, if for no other reason that I would want to make sure that I've got the primary as I want it, and also have a contingent in case that person also dies. I also agree it would make distribution simpler and quicker.
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03-28-2019, 05:00 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Posts: 2,509
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you can leave it as it... BUT if you contingent beneficiary dies... you have not payable beneficiary unless you used appropriate wording to define who is next in line.
I would update unless you really have no on else to give to. ...say you could put me on the list!! --joking.
Check how your state defines it if not spelled out. Do they go down the linage of you or your previous beneficiaries?
If you don't define, someone else will.
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03-28-2019, 05:11 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Santa Paula
Posts: 4,070
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Quote:
Originally Posted by bingybear
you can leave it as it... BUT if you contingent beneficiary dies... you have not payable beneficiary unless you used appropriate wording to define who is next in line.
I would update unless you really have no on else to give to. ...say you could put me on the list!! --joking.
Check how your state defines it if not spelled out. Do they go down the linage of you or your previous beneficiaries?
If you don't define, someone else will.
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If you have the phrase "per stipes" after the contingent beneficiary, it will pas to their heirs.
__________________
Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
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03-28-2019, 05:24 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Apr 2016
Location: Ex-Cali
Posts: 1,236
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It's best to update it so the contingent doesn't have to worry about producing a death cert for the primary who is now deceased. Also you can insert a new contingent. Your trust should probably be last contingent if you have a trust.
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The plan was September 1, 2022 and I am 95% there. Still working a few hours a week at the real job.
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03-28-2019, 05:25 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 2,534
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With VG, you can update beneficiaries online in less than 5 minutes. In the event the primary beneficiary dies before you, why not udate it? No point in letting this become a problem for the contingent beneficiary, or letting assets require probate (which I'm assuming would be the next step).
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03-28-2019, 05:40 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Posts: 2,509
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Quote:
Originally Posted by Souschef
If you have the phrase "per stipes" after the contingent beneficiary, it will pas to their heirs.
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It also does that if you put per capita... but how it does it is differently. They each have a method of dividing assets based on different rule for dividing assets. These are likely the most common. Depending upon the way the beneficiaries are defined (or who is alive at distribution) can greatly change who gets what.
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03-28-2019, 07:15 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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Spellcheck: per stirpes
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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03-28-2019, 08:36 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Santa Paula
Posts: 4,070
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Quote:
Originally Posted by jazz4cash
Spellcheck: per stirpes
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OOPs
__________________
Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
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03-29-2019, 07:12 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Location: Chicago
Posts: 1,154
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Got it. Thanks all
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