Year-end financial planning: Why beneficiary reviews and long-term care matter

SAVANNAH, Ga. (WTOC) - As the end of the year approaches, a Savannah financial professional says reviewing beneficiaries and planning for long-term care are two steps families should consider.

Vann Doubleday of Thrivent Financial joined WTOC+’s Mike Cihla for the second part of a conversation about year-end financial planning. In the first part, they discussed required minimum distributions, charitable giving and Roth conversions.

Review your beneficiaries

Doubleday said people should check their beneficiary designations at least once a year. Those designations can be found on life insurance policies, retirement accounts, investment accounts and bank accounts with transfer-on-death or payable-on-death provisions.

Life events such as divorce, remarriage or the death of a family member can make an existing designation outdated, he said.

“It’s very important regularly, at least once a year, just to make sure, go through all of your contracts and just double check and make sure they’re set up correctly,” Doubleday said.

Cihla shared that he discovered his father was still listed as a beneficiary on one of his accounts 10 years after his father had died.

Doubleday said beneficiary designations generally determine who receives assets from an account or policy, even when a will says otherwise. He also encouraged people with trusts to review whether their assets and beneficiary designations align with their estate plans.

The interview was intended as financial education, not legal or tax advice. Viewers should consult an attorney or tax professional about their individual circumstances.

Make a long-term care plan

November is Long-Term Care Awareness Month, and Doubleday said it is a good time for families to discuss how they would pay for care if it becomes necessary.

Doubleday said he has seen care costs in Savannah range from $8,000 to $12,000 a month. Actual costs vary depending on the type and amount of care a person needs.

He encouraged families to develop a written plan and consider options such as long-term care insurance, savings and investments, or benefits available to eligible veterans. He said insurance is one option, but people must qualify for coverage and health conditions can make that more difficult.

Doubleday said he now has more conversations about long-term care planning with people in their 40s and 50s, including those in the “sandwich generation” who may be helping aging parents while supporting their children.

“I think the key takeaway is you need a plan regardless of what that plan is,” he said.

Watch the full WTOC+ interview with Cihla and Doubleday for more on beneficiary reviews and long-term care planning.