A pension is an important financial asset that you have earned from your years of hard work. You can use the pension during your retirement to go on vacation, pay bills, put a down payment on a new home, buy a car and however else you wish to spend it. It is your money. But, what happens to it when you die? Here’s how you can leave your pension to a loved one in Oneida, New York.
If you are worried about what will happen to your pension plan upon your death, you will want to find out what type of plan it is. A defined benefit plan could very well have a clause in it that mentions survivor’s benefits. This clause states that if the member of a pension plan dies before his or her spouse, the benefits will continue to pay out to the until the surviving spouse dies.
This clause can be waived if both spouses agree to do so. When the clause is waived, it typically allows for the pension benefits to be left to a child of the pension member. Both spouses must sign this waiver and have it notarized and legally recorded. Should your spouse die before you, you still have options to leave the pension to your child upon your death.
Understanding pensions can be very difficult. It’s best to do your research now and ask plenty of questions. Thinking about your death is never easy, but it is something that everyone should do so they can properly plan for the future. This is especially important when it comes to deciding who will be the beneficiary of your pension when you die.