What Information Should You Tell Your Beneficiaries—and When?

Naming beneficiaries is one of the most important steps in any estate plan, but many people stop there. In reality, naming beneficiaries is only the beginning. Your loved ones also need to know what to expect, where to find important information, and who to contact when the time comes.

The first step is to ensure you have beneficiaries listed on all applicable financial accounts. Retirement accounts, life insurance policies, annuities, transfer-on-death investment accounts, and payable-on-death bank accounts should all be reviewed regularly to ensure beneficiary designations are complete and up to date. This is one of the most commonly overlooked areas of estate planning. Missing, outdated, or incorrect beneficiary designations can create unnecessary delays, increase legal costs, and complicate the settlement of your estate.

Once your beneficiary designations have been reviewed, consider scheduling a family meeting, or at least a conversation with the individuals who will eventually handle your affairs. While you don’t necessarily need to disclose every financial detail, giving your beneficiaries a roadmap can reduce confusion and stress during an already difficult time.

When to Meet

A good rule of thumb is to have this conversation after you’ve completed or substantially updated your estate plan, and then revisit it whenever there are major life changes, such as a marriage, divorce, the birth of a child, the death of a spouse, or significant changes in your finances.

During the meeting, explain the overall structure of your estate plan and let your beneficiaries know where important documents are stored. They don’t necessarily need copies of everything today, but they should know how to access the information if it becomes necessary.

Topics to Discuss

Consider covering the following subjects during your conversation:

• The location of your will, trust documents, powers of attorney, and advance healthcare directives.
• Where deeds, vehicle titles, military discharge papers, birth certificates, marriage certificates, and other important legal documents are stored.
• The names and contact information for your attorney, financial advisor, accountant, insurance agent, and other trusted professionals.
• Your preferred funeral home, burial or cremation wishes, and any prepaid funeral arrangements.
• A list of banks, investment firms, retirement accounts, insurance companies, and other financial institutions where you maintain accounts.
• Information about life insurance policies and who to contact to begin filing claims.
• A secure method for accessing digital assets, including password managers, email accounts, online financial accounts, cloud storage, and social media accounts. Avoid writing passwords on paper that could be lost or stolen; instead, explain how authorized individuals can access your password management system or other secure records.
• Contact information for mortgage lenders, credit card companies, utilities, and other creditors that may need to be notified.
• The location of safe deposit box keys, home safes, or other secure storage areas, along with instructions for accessing them.
• Any business interests, rental properties, or other assets that may require immediate attention.
• The names of family members or friends who should be notified promptly in the event of your passing.

Remember that this conversation is not a one-time event. Review your plans every few years and whenever your circumstances change. As your assets grow, accounts are opened or closed, or family relationships evolve, your beneficiaries should receive updated guidance.

By taking the time to organize your information and communicate your wishes, you can make an incredibly difficult period much easier for the people you care about most. A little preparation today can save your beneficiaries countless hours of uncertainty, paperwork, and unnecessary expense later while helping ensure your wishes are carried out as intended.