Can you name your beneficiaries right now?

Hey family, Michael here…

Last week, I posted something on LinkedIn that struck a nerve.

I asked a simple question:

"Can you name your beneficiaries if I snapped my fingers right now?"

Most parents can't. And it's costing families millions.

The post didn't get the exposure I wanted, but a couple of people messaged me directly saying things like:

"I have no idea who's on my 401(k)."
"I don't know if my ex-husband is still listed, how can I find out?"
"I set this up 10 years ago and never looked at it again."

Here's why that post resonated:

Most parents can't name their beneficiaries.

And if your beneficiaries aren't structured correctly:

→ Your life insurance (whatever the amount) goes to the wrong person
→ Your Special Needs Trust stays empty
→ Your child gets nothing
→ Your child's caregiver is left financially responsible with no plan and no resources

Not because your estate attorney did a bad job.

Because you never updated your beneficiaries after life changed.

Why This Matters (Especially for Families Raising Neurodivergent Children)

Structuring your beneficiaries isn't just "fill out a form."

It's an art and a science:

→ Coordinating with your Special Needs Trust
→ Understanding tax implications (IRAs to trusts can create tax chaos)
→ Planning for contingencies (what if your primary beneficiary dies?)
→ Updating after life changes (divorce, remarriage, new kids)

Most people don't do this because it's tedious:

→ Call the insurance company
→ Fill out forms
→ Call the 401(k) provider
→ Fill out more forms
→ Update bank accounts, IRAs, investment accounts

So they put it off.

Then life happens:

→ You get divorced (but your beneficiary still says ex-spouse)
→ Your parents pass away (but your beneficiary still says "Mom and Dad")
→ You remarry (but your beneficiary still points to your first spouse)

And now your life insurance? Going to the wrong person.

Your trust? Empty.

Your child? Gets nothing.

The 5 Most Common (and Most Costly) Beneficiary Mistakes

Here are the mistakes I see families make:

1. Naming your child directly
→ Can jeopardize their eligibility for government benefits like Medicaid and SSI
→ If your child receives an inheritance directly (not through a Special Needs Trust), it could disqualify them from needs-based benefits, consult an attorney to understand your situation.

2. Overlooking family dynamics
→ Blended families, estranged relatives
→ Your second spouse vs. your kids from your first marriage—who gets what?

3. Skipping contingent beneficiaries
→ What if your primary beneficiary dies before you?
→ Without a contingent, your funds could end up in probate, which means delays, legal fees, and your family doesn't get immediate access

4. Ignoring tax implications
→ Retirement accounts left to trusts can create unexpected tax issues
→ Work with a CPA or estate attorney to understand how your trust should be structured

5. Trusting outdated designations
→ Ex-spouse or deceased parents still listed as beneficiaries
→ Life changes. Your paperwork doesn't—unless you update it

What You Should Do This Week

Here's your action plan:

Step 1: Pull out every account you have (life insurance, 401(k), IRA, bank accounts)

Step 2: Check the beneficiary designations

Step 3: Ask yourself:

• Is this still the person I want to inherit this?

• Is my Special Needs Trust listed where it should be?

• Do I have contingent beneficiaries in case my primary dies?

Step 4: If anything's unclear, consult with your insurance professional, estate attorney, or financial advisor before making changes

Don't wait.

I've heard about families losing significant money because they put this off.

That LinkedIn post I mentioned?

It resonated because most families know they should do this, but they haven't.

Don't be one of them.

P.S. Not sure if your coverage protects your child's future?
I work with 10 families per quarter to audit their life insurance, disability insurance, and beneficiary designations. [Book your free 15-minute coverage review here] and we'll walk through your beneficiary structure together.

Disclaimer: This content is for general educational purposes only and is not a substitute for clinical, medical, financial, tax or legal advice. Please consult licensed professionals who understand your individual situation.