What is a key reason to update beneficiary designations after major life events?

• A. It ensures assets transfer according to current wishes
• B. It increases taxes
• C. It prevents future changes
• D. It complicates estate planning

Answer: (D)

Beneficiary designations determine who receives assets directly when you die, and they often bypass your will and probate. After major life events—such as marriage, divorce, the birth or adoption of a child, or the death of someone you named—your wishes and relationships can change. Updating these designations makes sure the assets go to the people you currently want to benefit and keeps your overall plan aligned with reality. It helps avoid unwanted surprises and keeps estate planning straightforward. It isn’t about increasing taxes, preventing future changes, or adding complexity; it’s about ensuring your assets go to your intended recipients and can transfer smoothly when the time comes.