Are Your Beneficiaries Up to Date?
When Prince passed away in 2016, the world lost one of the greatest artists of all time. What we didn’t know at the time was just how complicated the aftermath would be. Prince died without a will, without clear beneficiaries listed, and with an estate worth hundreds of millions of dollars. The result? Six years of legal battles, more than $10 million in lawyer fees, and family members (and people claiming to be family) fighting over his fortune. By the time the dust settled, the people he likely wanted to benefit most had to share control with distant relatives. Not exactly the legacy anyone wants. Here’s the thing: you don’t have to be Prince to end up in the same situation. Without proper beneficiary designations, your accounts—retirement funds, life insurance, even basic bank accounts—can get tangled up in probate court. And that’s when things get messy.
Why Beneficiary Designations Matter
Think of your beneficiary forms as backstage passes. They cut through the line and give your loved ones direct access to the assets you’ve set aside for them. No probate, no extra paperwork, no waiting for a judge’s stamp.Here’s what they do for you:
- Speed: Assets transfer directly, often within weeks, instead of dragging through probate for months or years.
- Clarity: There’s no question about who inherits—your form spells it out.
- Control: You decide who benefits, not the courts.
When to Update Beneficiaries
Life changes fast, and your paperwork should keep up. Review your designations:- After marriage or divorce
- When you welcome kids or grandkids
- If you lose a spouse or beneficiary
- Anytime your wishes change
A Personal Prince Story
Here’s a fun fact: Amy Marietta, our Associate Financial Advisor, actually played flute with Prince once—on The Tonight Show with Jay Leno!Here is the link if you would like to see the performance, especially the time stamp 2:40.
That performance was unforgettable. But when I think about what happened to his estate, I can’t help but wonder how easily all of that drama could have been avoided with a few signatures on some forms.
Bottom Line
Prince’s music will live on forever, but his estate became a cautionary tale. Naming and updating beneficiaries is one of the simplest, most powerful steps you can take to protect your family and keep your legacy intact. It doesn’t take long, and it makes all the difference when the time comes. Every summer, we review beneficiary designations with our clients to make sure they’re up to date. Throughout August, you may have seen emails from us reminding you to confirm or update your records. If you haven’t had the chance yet, now is the perfect time. A quick review can prevent years of hassle later - you’ll thank yourself later, and so will the people you care about most.Get Started Today
Whether you’re a current client or seeking a financial partner, we invite you to take the next step by getting in touch today. You can schedule an introductory appointment here, call (310) 370-7776, or email angela@dorseywealth.com. Your financial well-being is our top priority, and we’re ready to help you make the most of your hard-earned wealth.
About Angela
Angela Dorsey is the founder and financial advisor at Dorsey Wealth Management, a fee-only financial planning firm based in Torrance, California, helping women prepare for retirement. Angela earned a BS in computer science from Loyola Marymount University, an MBA from UCLA Anderson School of Management, and spent 20 years as a Senior Compensation Specialist in large corporations before becoming a CERTIFIED FINANCIAL PLANNER™ professional and a Registered Investment Advisor (RIA). That background gave her the tools to couple with her passion for empowering women to make the best financial decisions possible. Angela lives in Torrance, California, with her husband. She enjoys spending time at the beach or surrounded by nature. To learn more about Angela, connect with her on LinkedIn.