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
- 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:
- 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.