Making a Beneficiary Change? Fail-Proof Your Plan

Carrie Jane Akins purchased annuities from an insurance company that were intended to provide tax-deferred growth on her money until sometime in the future when she might need the funds. In the case that she died before spending the annuities, she named a beneficiary to inherit the balances.

A few years after purchasing the annuities, Carrie decided to change the beneficiary. The insurance agent she contacted then gave her the company’s official change-of-beneficiary form to complete—noting that she needed to sign it to make it official. Carrie completed the form to reflect her revised estate plan, but unfortunately she mailed it back unsigned.

The insurance company mailed it back to her, indicating that it must be signed before the change could be effective. Sadly, Carrie was hospitalized, fell into a coma and died before she could sign the returned form.

So What Happened?

• After Carrie’s death, her newly desired beneficiary went to battle with the original beneficiary.
• Even though Carrie had taken steps to begin the process of changing her beneficiary, she hadn’t signed the company’s required form. Therefore, the insurance company properly paid the original beneficiary—Carrie’s revised wishes were not fulfilled.

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Avoid Making a Similar Mistake
Be sure to review your beneficiary designations regularly and pay close attention to details required to change a beneficiary. Consult with an estate planning attorney if you have questions about how to create an estate plan or how to update your existing plan.

Lake v. Young Harris Alumni Foundation, Inc., 283 Ga. App. 409, 641 S.E. 2d 628 (2007).