When it comes to estate planning, a will or a trust often receives the most attention. However, the simple act of naming a beneficiary to inherit assets in your 401(k), IRA, or savings account, or the proceeds of a life insurance policy or annuity, is a powerful estate planning tool.
"A beneficiary designation is going to trump anything else that you may have established to pass on assets," said Sarah Mouser, managing director of financial planning at Verdence Capital Advisors. Yet, many people mistakenly minimize their importance, assuming a will is enough.
