Although these items, called non-probate assets, generally do not become part of your estate, their value is important to the planning process because they may be subject to federal estate taxes.
Designating a beneficiary of your life insurance policy or IRA does not take the place of a will. These are only some of the assets which need to be considered in your overall estate plan. Under certain circumstances, it is even advisable to make the beneficiary your estate or a trust created under your Will.
If your principal assets are non-probate assets such as life insurance, IRA accounts, or pension or profit-sharing plans, a periodic review of the beneficiary designations is essential to effective estate planning.
