Beneficiaries are the people who will inherit your assets –savings and investment accounts, life insurance policies, homes, cars, and other possessions. In general, there are two ways to name beneficiaries.

If the original IRA owner named contingent beneficiaries on the beneficiary form, those names are null and void if the primary beneficiary is still alive when the owner dies. Assuming the primary beneficiary does not disclaim any portion of the IRA, the names on the contingent line become meaningless. The moment an IRA owner dies, the primary beneficiary is immediately deemed to be the new owner of those assets.

If you know that you want to leave behind money or assets for your family members, is it better to give a gift while you are still living or an inheritance after death?

What makes up your investment portfolio? Read on to learn more about asset allocation and how you can balance potential risks and rewards.