Often, an individual retirement account (“IRA”) is a person’s largest asset. IRA accounts are a valuable tool that can be used for the purposes of supplementing one’s income during life, and providing for his or her heirs in death. A recent article discusses five common and costly mistakes that people often make while completing their beneficiary designation. The single most common error concerning IRA accounts is failing to update forms after important life events, such as a marriage, divorce, or the death of the designated beneficiary. Anytime a life event occurs for which revisions to your will become necessary, you should also review and update your IRA beneficiary designation. Another major error many people make is naming their estate as the beneficiary of their IRA. This happens both when people explicitly name their estate as the beneficiary, as well as when the estate becomes the beneficiary because the person failed to select a beneficiary. This designation is often problematic because it causes the income taxes on distributions to be sped up, and may result in lost growth potential. To speak with an estate planning professional about naming a beneficiary on your IRA, or for any other estate planning questions, call us at 818.956.9200.