SOUTHERN FEDERAL CREDIT UNION

Office: 713-232-7774     Fax: 713-232-7122

         
   
 
 

Updating IRA Beneficiaries

Updating your regular membership account card does not cover your IRA account, so it is important that you review your beneficiaries annually to be sure your wishes will be fulfilled.

Most members are not aware of the following issues regarding beneficiary designations:

  • IRAs are not governed by a member’s will.
    An IRA is a non-probatable asset; therefore it is not automatically covered in the owner’s will. Owners who would like the will to govern their IRA funds can accomplish this by naming their estate as the IRA beneficiary by writing “per my will” in the beneficiary designation.
  • There are default provisions in the IRA Agreement. If no beneficiaries are listed, or none of the listed beneficiaries qualify, then the IRA funds will be paid to the surviving spouse. If there is no surviving spouse, then the funds will be equally divided among the legitimate natural and legally adopted children. If there is no spouse and no children, then the funds will be paid to the owner’s estate.

Some common reasons for beneficiary changes are:

  • Marital Status
  • Birth or Death in the family

Beneficiary designations may be as follows:

  • Family/Friends
  • An Organization or Charity
  • A Trust or Estate

Regardless of the reason for updating beneficiaries, the process is as simple as completing the appropriate form. Please call us at 713-232-7774 to receive your form and for any assistance you might need.