A recent case from the Michigan Court of Appeals reminds all of us of the importance of a proper beneficiary designation. Lawyers who practice estate planning overlook many times that clients do not follow through in making beneficiary changes to their life insurance, retirement accounts or investment accounts. In an opinion in the recent case of Security Mutual Life Insurance Company of New York v. Amira-Bell, issued on July 21, 2022, the Court
of Appeals decided that the owner of a life insurance policy had not gotten a beneficiary form to Security Mutual Life Insurance Company in a proper form and/or in a timely manner.

While for some of us procrastination is an actual strategy to deal with issues that come up in our life, procrastination is not a good strategy for estate planning. By example, in the Security Mutual Life Insurance Company case, the owner of a life insurance with the Company had been sent back the beneficiary form to make some corrections. The owner never responded, therefore no complying with the changes that were requested. Apparently, the owner had divided the life insurance into percentages that did not total 100%, so the form was not done properly.

When changing beneficiaries on life insurance and investments, it is typical to receive a confirmation of the change. If you don’t receive such, either by mail or email, make sure to follow up.