Q: I have a will. Is it also necessary to have a beneficiary designation on file with the manager of my IRA account?
My will covers all of my assets and is not very complex, but the investment company that manages my IRA account has a beneficiary form which doesn't allow the same amount of detail. Upon my death, is it likely that there will be financial, e.g. tax, implications if no beneficiary designation is attached to the IRA account? Is it helpful to designate "My Estate" as the IRA account beneficiary?
A: It will save your heirs some money if you do so. If there is no beneficiary, all of the assets in the IRA will be subject to the audit fees from the Clerk's Office.
A: You want to have designated beneficiaries on your investment accounts since they will pass outside of any probate and pass automatically to your beneficiary upon your passing.
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