Designating a beneficiary means choosing someone — such as a loved one, a friend or an organization — who will receive your financial assets after you're gone.

1. You can have multiple beneficiaries.
   You can name more than one beneficiary to share in the proceeds. If this is the case for you, specify the percentage you would like each beneficiary to receive.
2. It’s a good idea to designate primary and secondary beneficiaries.
   If any primary beneficiaries decline the benefit or pass away before you do, the assets will go to your secondary beneficiaries. If you don't have a surviving beneficiary, the default beneficiary can be your estate.
3. Your beneficiary doesn’t have to be in your immediate family.
   Beneficiaries often include spouses, children and other relatives, but they can also include friends, trusts, charities and institutions.
4. You can name minor children as a beneficiary.
   Here are a few important things to keep in mind:
   • Children under 18 or 21 (depending on your state) can’t legally take full control of inherited assets. Until they reach that age, someone needs to manage those assets for them — usually a guardian or trustee.
   • If no one is officially named as a guardian or trustee, the court may step in and place the assets in a supervised account until the child becomes old enough to inherit assets.
   • One helpful option is to set up a Uniform Transfer to Minors Act (UTMA) account with a financial institution. By choosing a trusted adult as the custodian, you can help ensure the assets are managed responsibly and then passed on to your child once they reach the legal age.
5. You should review your beneficiary information regularly.
   It’s a good habit to update your beneficiary designations annually, as well as when you experience life events such as:
   • Marriage
   • Birth or adoption of a child
   • Divorce
   • Change of address