contingent beneficiary

[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?

 

[GrayHare]

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?

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.

 

[CardsFan]

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.

 

[RunningBum]

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.

 

[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.

 

[Souschef]

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.

If you have the phrase "per stipes" after the contingent beneficiary, it will pas to their heirs.

 

[CaliKid]

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.

 

[HI Bill]

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).

 

[bingybear]

If you have the phrase "per stipes" after the contingent beneficiary, it will pas to their heirs.

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.

 

[jazz4cash]

Spellcheck: per stirpes

 

[Souschef]

Spellcheck: per stirpes

OOPs

 

[ripper1]

Got it. Thanks all