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3 Reasons to Review Your Beneficiary Designations

As we look ahead to the New Year, it’s a great time to tune up our plans. One often-overlooked task is updating beneficiary designations.
Three Athletes sitting side by side giving thumbs up.

Some assets don’t pass through your will, but through naming a beneficiary or beneficiaries. These include:

  1. Retirement plan assets
  2. Life insurance
  3. Brokerage accounts and bank accounts
  4. Donor-advised funds

Updating your beneficiary designations ensures that your assets are passed to the people and causes that matter most to you, and are a wonderful way to create a charitable legacy for Special Olympics.

Here are three big reasons to include Special Olympics when you update your beneficiary designations:

1. It's Easy and Flexible
It's as easy as filling out a form provided by your plan administrator or bank. The best part? If your circumstances change, you can update your beneficiaries at any time without any fuss. You can also name Special Olympics as a secondary or contingent beneficiary. This means that we only receive your gift if your primary beneficiary(ies) don’t survive you. If you’re not sure what the future holds for your loved ones and their financial needs, you can name Special Olympics a secondary beneficiary now.

2. Tax Benefits
Naming a nonprofit as a beneficiary can provide significant tax benefits. Retirement assets left to a Special Olympics are not subject to income taxes. This means every dollar goes towards supporting the cause you care about.

3. Make a Lasting Impact
By naming Special Olympics as a beneficiary, you can make a real difference in the lives of our future athletes. Did you know that for every athlete participating in Special Olympics in the U.S., there are 13 who don’t have access yet? Your gift will open up more opportunities for all who want to participate in our programs.

You might be wondering, "When should I review my beneficiary designations?" Here's a quick checklist of life events that should prompt a review:

  • Marriage or Divorce: When you get married or divorced, it's crucial to update your beneficiary designations. If not, your assets might not go to the person you intend.
  • Birth or Adoption of a Child: The arrival of a new family member is a joyful event and should always trigger an update to your estate plans and beneficiary designations.
  • Death of a Loved One: If a beneficiary passes away, it's important to update your designations to ensure your assets are distributed according to your wishes.
  • Retirement: Retirement is a significant milestone that often comes with changes in financial planning.
  • Change in Financial Circumstances: If you experience a substantial change in your financial situation, it might be a good idea to review your designations.

So, why wait? Take a moment to review your beneficiary designations. You can protect your loved ones and help fund a more inclusive future for all. If you have any questions or need assistance, don't hesitate to reach out. We're here to help you make the most of your giving.