Yes! You can use AI to fill out IRA Beneficiary Designation Form

A Beneficiary Designation Form (BDF) is often a 'set it and forget it' document, and people forget to update it after a marriage, divorce, birth, or death. This is a critical error because the BDF supersedes a Will, meaning an ex-spouse could inherit your entire IRA if you forgot to remove them as the primary beneficiary. To prevent this, review your BDF annually and immediately after any significant life event.

People often list their children as beneficiaries but forget to add the 'per stirpes' designation, assuming a deceased child's share will automatically pass to their grandchildren. The consequence is that if a child predeceases the IRA owner, their share is split among the surviving primary beneficiaries ('per capita'), disinheriting the grandchildren. To avoid this, always add 'per stirpes' next to a beneficiary's name if you want their heirs to inherit their share.

When naming multiple beneficiaries, a common data entry error is assigning percentages that do not add up to exactly 100%. This happens due to simple miscalculation or typos, and the IRA custodian may reject the form or apply default rules that don't align with your intent. To avoid this, double-check all percentages before submitting. AI-powered form filling tools like Instafill.ai can prevent this error by automatically validating that percentages sum to 100%.

Filers often stop after naming primary and contingent beneficiaries, not considering who should inherit the IRA balance after the primary beneficiary dies. This oversight means the IRA provider's default rules will apply, often passing the remaining assets to the primary beneficiary's estate or spouse, which may not be the original owner's wish. To ensure your assets follow your intended path, you must explicitly name successor beneficiaries, which may require using a custom trust.

People sometimes just write a name or relationship (e.g., 'my son, John') without providing a full legal name, date of birth, and Social Security Number. This lack of detail can create significant delays and legal hurdles for the beneficiary when they try to claim the assets, as the custodian must verify their identity. Always provide complete and accurate identifying information for every beneficiary listed to ensure a smooth transition.

When designating a trust, people often use simple language like 'The John Doe Trust,' which can cause major complications. This is especially true if the trust is for a specific person who might predecease the IRA owner or if multiple sub-trusts are involved, potentially disqualifying the 'stretch-out' provision. Use precise, conditional language specifying the full trust name, date, and conditions for inheritance to avoid ambiguity.

People fill out the BDF assuming their IRA provider allows for features like mandated stretch-outs, separate accounts for multiple beneficiaries, or portability to another institution. Many standard agreements do not permit these, limiting the beneficiary's options and potentially costing them significant money in taxes or lost growth. Before filling out the BDF, review your IRA custodial agreement to understand its rules; if the agreement is restrictive, consider moving the IRA to a provider with more flexible terms.

An IRA owner may not consider that their wealthy primary beneficiary might want to 'disclaim' (refuse) the inheritance for tax or estate planning reasons. Without a specific disclaimer beneficiary named, the disclaimed portion goes to the contingent beneficiaries, which may not be the desired outcome (e.g., if the goal was to give it to charity). This forces the primary beneficiary into a less tax-efficient process of inheriting and then gifting the funds, so use specific language to name a different beneficiary in the event of a disclaimer.

An IRA owner may become incapacitated and unable to manage their own finances. Without a Durable Power of Attorney (DPOA) that explicitly grants an agent authority to handle IRAs, your accounts can become mismanaged or fail to adapt to changing circumstances. This can result in lost opportunities, like a spousal rollover, so ensure you have a DPOA that specifically lists the IRA-related powers your agent can exercise.

After submitting the form, many people fail to keep a copy for their records. If the IRA custodian loses the form or has an outdated version on file, there is no proof of the owner's final wishes, which can lead to disputes and incorrect distributions. Always keep a physical or digital copy of the signed and accepted BDF with your other important estate documents. Tools like Instafill.ai can make any flat PDF fillable and save a clean, digital copy for your records.