Creating an initial estate plan is only the first step in protecting and providing for your loved ones. Much like the proverbial flower garden, an estate plan must be tended to for it to survive and function as intended. One crucial way to do that is to make sure that your beneficiary and fiduciary designations are up to date. Toward that end, the Los Angeles attorneys at Schomer Estate & Wealth Advisors explain the importance of reviewing beneficiaries and fiduciaries in your estate plan.
Who Are My Beneficiaries in My Estate Plan?
One of the most important reasons to create an estate plan is to be able to determine what happens to your estate assets after you are gone. In the absence of a plan, the State of California gets to effectively create a plan for you using the California intestate succession law. While the terms “beneficiary” and “heir” are often used interchangeably, they are not the same. Anyone who inherits from your estate pursuant to the state’s intestate succession laws is referred to as an “heir.” A beneficiary is something that you specifically name to inherit from your estate within your estate plan. A person, organization, or even the family pet could be a beneficiary in your Last Will and Testament. You also name a beneficiary when you purchase a life insurance policy and when you establish retirement accounts. Finally, you may have financial accounts that designated as “payable on death (POD),” meaning that the named beneficiary automatically becomes the owner of the account after your death.
Who Are My Fiduciaries in My Estate Plan?
You may also name several fiduciaries within your comprehensive estate plan. The Executor of your estate, appointed in your Will, is a fiduciary as is the Trustee of a trust you establish, the Agent in a Power of Attorney, and a Guardian nominated in your Will. These fiduciaries perform extremely important roles within your plan and are held to very high standards because of the importance of the roles they play. Those roles include things such as overseeing the administration of your estate after your death, managing trust assets and administering a trust, making healthcare decisions for you, and taking over the care and maintenance of your minor children.
Why Is Reviewing Beneficiaries and Fiduciaries Critical?
Reviewing and revising your entire estate plan is something you should do on a routine basis; however, the need to update beneficiaries and/or fiduciaries might come up long before a scheduled routine review. Collectively, these people will receive your estate assets, control assets, make crucial healthcare decisions for you during a period of incapacity, and take care of your children. Failing to update your beneficiaries and fiduciaries could lead to the failure of your estate plan. To illustrate, imagine the following common problems that can occur when beneficiaries and/or fiduciaries have not been recently reviewed:
- Your former spouse inherits your estate and/or it put in charge of probating your estate.
- A beneficiary passed away and his/her share is now going to someone you did not intend it to go to.
- Your child has reached the age of majority but you forgot to add her directly to your Will, so she does not inherit the lump sum inheritance you intended her to have.
- A beneficiary recently became disabled and the inherits you left him/her results in the loss of important assistance program benefits.
- The person named as Trustee in your trust recently moved to another country and you didn’t include a successor so now a judge must appoint a Trustee.
- The person you named as Guardian is no longer capable of acting in the role, leaving a judge to appoint one for your children without your input.
- Your Healthcare Power of Attorney still has your former spouse as your Agent when you become incapacitated, meaning he/she has to make critical healthcare decisions for you.
Is It Time to Review Your Beneficiaries and Fiduciaries?
For more information, please join us for an upcoming FREE seminar. If you would like to review your beneficiaries and fiduciaries, contact the experienced Los Angeles estate planning attorneys at Schomer Estate & Wealth Advisors by calling (310) 337-7696 to schedule an appointment.
- How a No Contest Clause Can Help Your California Estate Avoid Probate Litigation - August 17, 2026
- Reasons to Incorporate a Living Trust into My California Estate Plan - August 16, 2026
- What You Need to Know about Funding a Trust in California - August 15, 2026
