In the last post we discussed the importance of designating a beneficiary. If you have completed a beneficiary designation form - great!
However, there are still some common mistakes we have seen over the years that must be avoided. Even if you have completed a form, you may want to review that designation.
One mistake we see routinely is not naming a contingent beneficiary In particular, if the person has named his/her parents, who are not likely to live beyond the volunteer. If the primary beneficiary dies with no contingent on file, then the benefit must be paid to the estate, which creates all the trouble discussed in the previous post.
Therefore if you are designating a beneficiary, name a contingent. Even if it is a fellow volunteer - better to name one than not.