Beneficiary designation percentage

Contingent Beneficiaries: What Are They? What percentage do secondary beneficiaries share? What is beneficiary percentage set? Are designated beneficiaries revocable?

How do you calculate primary beneficiary percentage? Beneficiary percentages set the guidelines for how funds should be distributed. These designations are typically listed by percentages in lieu of monetary amounts, with the understanding that values of accounts can shift up or down over time. You will also need to determine what percentage of your assets will go to each beneficiary if you have more than one listed.

You might also name your spouse as the primary beneficiary of of the account, with your children each named as primary beneficiaries. If you do not assign a percentage for any secondary beneficiary, then all secondary beneficiaries will share equally. If you assign all secondary beneficiaries a percentage, but the percentages of those that qualify for payment do not total 1 , then the beneficiaries who do qualify will share in proportion to their percentages.

Tertiary Beneficiaries. If you’re naming only one tertiary beneficiary, put 1 in the percent column. You may continue listing beneficiaries on Exhibit “B” attached to this document.

If a primary percentage beneficiary dies before you, the benefit designated for the deceased primary percentage beneficiary will be allocated pro rata among the surviving primary percentage beneficiaries unless you provide that the share of the deceased percentage beneficiary goes to an Alternate Beneficiary. In the absence of a will, the beneficiary may face a long delay for probate court action. BENEFICIARY (IES) All beneficiaries in this section will be considered primary. Proceeds will be paid in equal shares to primary beneficiaries who survive you unless you indicate percentages. Percentages must equal 1. Decide what percentage (to 100) you would like CalArts to receive and name us, along with the percentage you chose, on the beneficiary form.

Return the completed form. Download the factsheet. The term IRA will be used below to mean Traditional IRA, Roth IRA, and SIMPLE IRA, unless otherwise specified.

If no primary beneficiaries survive you, proceeds will be paid to the surviving secondary beneficiaries named in this section. Payment will be paid in equal shares unless you indicate percentages. You must designate a specific percentage for each beneficiary. Shares must be whole percentages and total 1. Finally, beneficiary designations also have the added benefit of increasing the amount of money insured under FDIC rules, but this topic is beyond the scope of this article.

However, there is a downside to beneficiary designations in the context of other ways a person can transfer wealth without probate. PER STIRPES DESIGNATIONS : A per stirpes designation will direct death benefits to lineal descendants of the beneficiary if the beneficiary is not living at the time of claim. You may wish to seek legal counsel regarding use of per stirpes designations. Use percentages totaling 1 for primary.

PERCENTAGES : Please do not specify dollar amounts. Contact your retirement plan administrator, insurance company, bank or financial institution for a change-of- beneficiary form. Often, the owner will change his or her beneficiary designation upon divorce and name the children as the designated beneficiaries. If the owner later remarries, though, percent of the retirement assets will go to the new spouse instead of the children, even if the new spouse is not added as a beneficiary. I hereby revoke any previous designation of primary beneficiary (ies) and secondary beneficiary (ies), if any, and in the event of my death, designate the following: Payment to Beneficiaries.

Contact the administrator of your retirement plan, insurance policy, bank or brokerage account or donor advised fund for a change-of- beneficiary form or simply download a form from your provider’s website. Please note that in no event may a beneficiary be changed by a Power of Attorney (POA). I designate the following as beneficiary (ies) of my account with regard to the percentage (s) I have indicated below. Note: Please use whole numbers.

Decimals and fractions are not permitted. Also note, if one of your primary beneficiaries pre-deceases you, then 1 is divided among remaining primary beneficiaries. This beneficiary designation revokes all revocable prior beneficiary designations.

Unless you indicate otherwise, if any beneficiary predeceases you, that beneficiary ’s share will be divided pro-rata among the surviving beneficiaries of the same class (primary or contingent). A beneficiary designation becomes effective once received by MSRS in good order. Any newly submitted beneficiary designation supersedes any prior designations on file. Divorce If you divorce, MSRS is required by Minnesota Statute 524.

Signature – You must sign and date your form. If you wish to make a special designation , please read the following information carefully.