What is a beneficiary designation and how does it work?

A beneficiary designation is a way of assigning property, assets, and/or money to someone else in the event of your death. This designation is usually made in a will, trust, life insurance policy, or retirement account. In California, there are specific laws that govern how beneficiaries can be chosen and how their assets will be distributed. Beneficiaries are designated by name, and in some cases, multiple beneficiaries may be designated. This can be done by listing the name of the beneficiary and their relationship to you, such as a spouse, child, or other relative. Some people may also choose to use a trust, in which case beneficiaries are appointed by the trustor, and the trust document outlines how the assets within the trust will be distributed. When a beneficiary designation is made, the assets and/or money that were designated will bypass probate and go directly to the beneficiary. This can help reduce the time and cost associated with going through probate, as well as help ensure that the asset or money will go to the intended beneficiary quickly. In California, the laws governing beneficiary designations are complex, and it is important to ensure that all necessary legal steps are taken in order to ensure that the designation is valid and binding. It is important to consult an experienced estate planning attorney if you have questions about how to create and properly execute a beneficiary designation.

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What is a beneficiary designation and how does it work?

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