How do "death" and "benefits" go together?
“Death benefits” might sound like a contradiction in terms. But for your TSP, it’s what happens to your account when you die.
No one wants to think about death. But taking a few minutes to give the TSP some information about how you’d like things handled can simplify things for your family in the future. It can also give you some peace of mind now.
Yours to keep, yours to give
We’re often asked, “What happens to my TSP account if I don’t live to retirement? Does the TSP keep it?”
And the answer is no, we don’t keep it. Instead, we follow your instructions on how you’d like the balance of your TSP account distributed. It doesn’t take very long to set that up. You can do it by calling the ThriftLine or logging in to My Account. The action you’re taking is called “designating beneficiaries.”
You can designate up to twenty beneficiaries to receive a percentage of your account. That includes a person or persons, a foundation or charity, your estate, a trust, or a corporation. Your designation needs to be signed by a witness who is not a beneficiary to be valid.
Your TSP can become your legacy to the people or causes that are important to you. It’s a way to leave a mark in your world—and make a difference in someone else’s.
What if I don’t designate any beneficiaries?
If you don’t designate beneficiaries, your money will be distributed to the person or people closest to you in the statutory order of precedence, starting with your spouse, if you have one.
Change of life? Check your beneficiaries
You can check your beneficiaries in your annual statement, but it’s also a good idea to log in to My Account and evaluate your beneficiary designations whenever you experience a major life change, such as divorce, remarriage, or death of a family member. The beneficiary designations you make in your My Account are the ones we must follow, even if a will, prenuptial agreement, separation agreement, property settlement agreement, or court order says something different. So it’s important to keep your beneficiary designations up to date.
Plan ahead and make things easier for your survivors
One of the most difficult things about death is the sheer number of tasks the survivors must do while grieving a major loss. You can make it easier for your loved ones by planning ahead.
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