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Essential Guide to Beneficiary Designations for Life Insurance: Estate Planning Insights for Weyerhaeuser Employees

Healthcare Provider Update: Healthcare Provider for Weyerhaeuser Weyerhaeuser's healthcare benefit plans are typically managed through a variety of providers, widely depending on the location and specific employee benefits outlined in their policy documentation. Generally, major national insurers such as UnitedHealthcare, Anthem, and Aetna are among those that may provide coverage options for employees. Health Care Cost Increases in 2026 As 2026 approaches, Weyerhaeuser employees could face significant increases in healthcare costs, driven largely by anticipated steep hikes in Affordable Care Act (ACA) premiums. With some states forecasting premium increases exceeding 60%, and without the renewal of federal premium subsidies, over 22 million individuals may see their out-of-pocket expenses surge by up to 75%. Additionally, rising medical costs-fueled by hospital, physician, and medication price inflation-could contribute to an overall healthcare cost rise of 8.5% for employers, prompting shifts in cost-sharing dynamics between employers and employees. As these challenges unfold, navigating healthcare options strategically will be essential for managing individual financial impacts. Click here to learn more

What Is a Beneficiary?

The receiver of Death Proceeds

As an employee and retiree from Weyerhaeuser, it's important to know about designating a beneficiary. A beneficiary is an individual or entity you name (designate) to receive the proceeds of a life insurance policy on your life.

Irrevocable Versus Revocable

A beneficiary can be irrevocable or revocable. You cannot change an irrevocable beneficiary. An irrevocable beneficiary has a vested property interest in the life insurance death benefit (effective immediately upon being named as a beneficiary). This interest cannot be taken away or decreased without his or her consent. A revocable beneficiary is someone whose interest is contingent; that is, it can be decreased or terminated at any time.

Primary Versus Secondary Versus Final

Weyerhaeuser employees can name as many beneficiaries as they want, subject to limitations set by the policy. Most policies allow you to choose more than one beneficiary at each level and the proceeds would thereby be split equally between all beneficiaries surviving at a particular level upon the insured's death.

The beneficiary to whom the proceeds go first is called the primary beneficiary. If the primary beneficiary predeceases the insured, the secondary beneficiary becomes entitled to the proceeds upon the insured's death. A 'final' beneficiary can be named as well. Final beneficiaries will receive the proceeds only if they outlive the designated primary and secondary beneficiaries. Usually, charities or more remote relatives such as aunts, uncles, nieces, and nephews are named at this level.

In addition to the primary beneficiary, Weyerhaeuser employees should consider naming both secondary and final beneficiaries in case you outlive the primary beneficiary, you and your primary beneficiary die simultaneously, or the primary beneficiary is unable to collect the proceeds. In such cases, if you have not named secondary or final beneficiaries, the proceeds of the policy will pass to your estate and may therefore be subject to estate taxes. Naming secondary and final beneficiaries gives some extra protection against such eventualities.

Technical Note: If you and your primary beneficiary die simultaneously (and there are no other named beneficiaries), the proceeds are distributed under the Uniform Simultaneous Death Act (USDA). That is, you are presumed to have survived the beneficiary and the proceeds go to your estate.

Technical Note: A beneficiary who kills you by accident, in self-defense, or through gross negligence or manslaughter will be unable to collect the proceeds of insurance on your life. Every state bars intentional killers from profiting from their act.

Why Is Designating the Proper Beneficiary Important?

Estate Planning Goals of Life Insurance

In estate planning, life insurance is purchased for two primary reasons: 1) to provide cash to the insured's family members for daily living expenses, and 2) to provide cash for death taxes and estate expenses. In order to ensure that your beneficiaries receive the maximum benefit from life insurance policies on your life, you must properly structure ownership of your policies to avoid income and estate taxes that might deplete the funds. Proper designation of your beneficiaries is also important.

Caution: Weyerhaeuser employees should note that to avoid taxes, you must arrange proper ownership of policies on your life.

Subject to Federal Estate Taxes and/or Certain Limitations

Naming or changing the beneficiaries of your life insurance policies may have federal estate tax consequences. Additionally, naming or changing a beneficiary may be subject to some limitations. Therefore, Weyerhaeuser employees need to understand all the ins and outs of naming/changing a beneficiary.

Who Should You Name As Your Beneficiary In Order to Avoid Federal Estate Taxes?

Not Your Estate or Your Personal Representative (Executor)

Life insurance proceeds will not be includable in your gross estate for federal estate tax purposes unless: (1) the proceeds are payable to or for the benefit of your estate, (2) you possessed 'incidents of ownership' in the policy at the time of your death or at any time during the three years prior to your death, or (3) you transferred ownership of a policy within three years of your death.

Therefore, in order to avoid inclusion of the proceeds in your estate, thereby subjecting them to estate tax, you should not name your estate or your executor as a beneficiary. If you own the policy on your death (or within three years of your death), the proceeds will be includable in your estate whether you name your estate as your beneficiary or not.

The primary reason for not naming your estate or your executor as your beneficiary is that doing so subjects the proceeds to probate expenses and claims of creditors, whereas, if someone other than your estate or your executor were named, the proceeds would pass to that person free of such expenses and claims. It is a good idea for Weyerhaeuser employees to make sure that policies on their life that are owned by others do not name their estate or their executor as the beneficiary since this would cause inclusion of the proceeds in their estate when this would otherwise not be true.

Tip: Some state laws provide that proceeds payable to an estate or executor are treated as if they are paid to the ultimate beneficiaries of your estate (your heirs). The IRS honors state law in these cases. The effect of the IRS honoring such state laws is that the proceeds may not be taxable in the decedent's estate if the decedent did not own the policy prior to his or her death or within three years of his or her death or if the proceeds are directed by the decedent's will to a charitable beneficiary or the decedent's spouse.

Not to a Beneficiary to Satisfy a Debt

Naming a beneficiary to receive life insurance proceeds in payment of a debt will be considered by the IRS to be for the benefit of your estate, and the proceeds will be includable in your gross estate for estate tax purposes.

Not to a Beneficiary to Pay Death Taxes or Other Estate Debts or Expenses

Naming a beneficiary to receive proceeds under an agreement that requires him or her to pay death taxes or other estate debts or expenses will be considered by the IRS to be for the benefit of your estate, and the proceeds will be includable in your gross estate for estate tax purposes.

Not to a Beneficiary to Pay Alimony or Support

Naming a beneficiary to receive life insurance proceeds to pay alimony or support will be considered by the IRS to be for the benefit of your estate and these proceeds will also be includable in your gross estate for estate tax purposes. If the decedent/insured owns the policy on his or her death (or within three years of his or her death), ownership will cause the inclusion of the proceeds in the decedent/insured's estate regardless of who the ultimate beneficiaries are.

Who Should You Name As Your Beneficiary to Avoid Limitations?

No One, If You Are Incompetent

If you are incompetent (whether or not you are legally declared to be so), you cannot name or change a beneficiary. The test for incompetency to name or change a beneficiary is similar to the test for incompetency to execute a will; that is, do you have the capacity to understand your actions?

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Tip: There is a presumption that you are competent. If a party claims that you are incompetent, that party must prove it.

Not Your Employer, If You Have Coverage Under a Group Life Policy

Weyerhaeuser employees should note that some states do not allow you to name your employer as the beneficiary if your coverage is under a group life policy provided by that employer.

Not A Minor, Unless a Guardian Has Been Appointed (or a Trust Is Used)

Generally, insurers will not make settlements directly to minors. Weyerhaeuser employees should carefully consider whether to name a minor as a beneficiary unless they also appoint a guardian or use a trust.

Only As Allowed Under a Divorce Decree or Settlement Agreement

Your right to change a beneficiary may be limited by a divorce decree or settlement agreement. In some states, divorce automatically terminates a spouse's interest in insurance on the other spouse's life. In other states, divorce allows a policyowner to change the beneficiary upon divorce, even if the beneficiary is otherwise irrevocable.

Only a Specified Class, If You (The Insured) Are a Minor

In some states, if you (the insured) are a minor, you can name only a certain class of persons as beneficiaries. That class generally includes your spouse, parents, grandparents, and brothers and sisters.

Tip: Once a minor insured has reached the age of majority, he or she can change the beneficiary of a policy on his or her life.

Someone With an 'Insurable Interest'

Some states require that where you are not the owner of the policy, the beneficiary of the policy should have an 'insurable interest' in your life. The purpose of this rule is to prevent gambling. An insurable interest is a financial interest that would be adversely affected if you died. Blood and legal relatives are presumed to have an insurable interest.

Anyone, As Long As You Have an Existing Irrevocable Beneficiary's Consent

If you want to change the beneficiary, but have already named an irrevocable beneficiary, you need that irrevocable beneficiary's written consent to do so.

Tip: An irrevocable beneficiary's property right ends at his or her death.

Anyone, As Long as You Have Your Spouse's Consent If You Use Community Funds to Pay Premiums

If you live in a community property state, any assets acquired during the marriage are considered community property (i.e., each spouses owns an undivided one half interest in the property). A spouse's interest in community property cannot be disposed of by the other spouse. If you make premium payments from community funds, the insurance so purchased is also considered community property; you must, therefore, have your spouse's written consent when naming a beneficiary to such policies.

Should You Name Your Spouse As Beneficiary?

We'd like our Weyerhaeuser clients to consider that naming your spouse as a beneficiary may not be a good idea. If a spouse is named as the beneficiary, the unlimited marital deduction applies, and the proceeds will pass free of estate taxes regardless of who owns the policy. However, the proceeds will be included in the surviving spouse's gross estate (unless, of course, they have been spent before the surviving spouse's death).

By naming your spouse as the beneficiary, you will only postpone estate taxes, not avoid them entirely. Additionally, if you and your spouse die simultaneously and your spouse is named as the beneficiary of a policy on your life, the USDA provides that the beneficiary (your spouse) will be presumed to have predeceased the insured (you). Since your spouse will be deemed to have predeceased you, the unlimited marital deduction will be inapplicable, and the proceeds may be subject to tax in your estate.

How Do You Name or Change (I.E., Designate) a Beneficiary?

Complete a Beneficiary Designation form

When you buy life insurance, the insurer will provide you with a beneficiary designation form. Generally, the form need only be completed (i.e., the names of the beneficiaries filled in), signed, and dated by you.

Specifically Identify All Beneficiaries and the Distribution They Are to Receive

Weyerhaeuser employees should be specific when naming the beneficiaries. Make sure the designation clearly identifies to whom the proceeds are to be paid (and in what order if you are naming secondary and/or final beneficiaries). If you want the proceeds to be distributed to your children (including legitimate, illegitimate, and adopted children, and children from a previous marriage), specify the name of each child to be sure the ones you want to name as beneficiaries are included and the ones you don't want to name as beneficiaries are excluded. You may want to include a clause such as 'and any afterborn children' to provide for any children not yet born.

The phrase to my lawful children may disqualify illegitimate children in certain states. If you want to ensure that the proceeds go to your wife at your death, do not say 'to my wife, Anne Boleyn.' Rather, say 'to my present wife,' since one day Anne Boleyn may no longer be your wife.

Caution: Weyerhaeuser employees should note that t erms such as heirs, issue, per stripes, and per capita have legal definitions. Be sure you understand what the terms mean before you use them. These Weyerhaeuser employees should consult a lawyer if they are not sure.

Specifically Revoke Previous Designations

When changing a beneficiary, it is advisable to specifically revoke any previous designations by simply writing this on the change of beneficiary form.

Review Beneficiary Designations Every Two or Three Years or Upon a Change of Circumstances

You may want to review your beneficiary designations every two or three years to ensure they comport with your current circumstances and wishes. Additionally, Weyerhaeuser employees should be sure to check and update their beneficiary designations upon the occurrence of certain life events, such as marriage, divorce, remarriage, and the birth of children.

Can You Change a Life Insurance Beneficiary In Your Will?

No. A beneficiary designation made in your will does NOT override the beneficiary designation made on the insurer's form. For any Weyerhaeuser employees who want to change their beneficiary, you must execute a change of beneficiary form provided by your insurer. Do not rely on your will to do so.

What are the specific eligibility criteria for employees to participate in the Weyerhaeuser Pension Plan, and how do these criteria differ among salaried, non-union hourly, and union hourly employees? Understanding the nuanced eligibility requirements for the Weyerhaeuser Pension Plan is vital for employees considering their future retirement options. These guidelines not only determine who can partake in the plan but also influence the pension benefits they may accrue. Additionally, it would be beneficial to explore how changes in employment statusâ€”such as termination or reduction of hoursâ€”impact continuous eligibility in the plan.

Eligibility Criteria: Participation in the Weyerhaeuser Pension Plan depends on several factors, including whether an employee is salaried, non-union hourly, or union hourly. Salaried and non-union hourly employees accrue service until their employment ends, whereas union hourly employees' participation depends on collective bargaining agreements, with specific plan closure dates applicable at certain locations(Weyerhaeuser Company_Ef…).

Can you explain the process for calculating retirement benefits under the Weyerhaeuser Pension Plan, and what factors might affect final benefit amounts? This question delves into the critical components utilized in determining the retirement benefits for employees at Weyerhaeuser Company. Various elements such as length of service, salary history, and any contribution caps set by the IRS can significantly shape what an employee ultimately receives. Itâ€™s essential for employees to grasp how these factors interplay and what they can do to optimize their benefits as they approach retirement.

Retirement Benefit Calculation: Retirement benefits under the Weyerhaeuser Pension Plan are determined by a combination of vesting service and credited service. Vesting service establishes eligibility for benefits, while credited service calculates the benefit amount. Other factors, such as salary history, age at retirement, and IRS contribution limits, also affect the final benefit(Weyerhaeuser Company_Ef…).

What are the available options for beneficiaries under the Weyerhaeuser Pension Plan, and what specific documentation is necessary for designating a beneficiary? Naming a beneficiary is a crucial aspect of financial planning within the Weyerhaeuser Pension Plan. Employees must understand the rules surrounding beneficiary designations, especially in scenarios involving spouses and children. Furthermore, it is essential to explore the implications of these designations on peace of mind and financial security for the employeeâ€™s family.

Beneficiary Designation: Employees are required to designate a beneficiary for the pension plan, especially if they are married. If married, the spouse must be the primary beneficiary unless written consent is provided. Employees can name contingent beneficiaries if their spouse predeceases them, and these designations must be submitted on approved forms(Weyerhaeuser Company_Ef…).

In what ways can employees initiate the claims process if they believe there has been an error in their pension benefit calculations at Weyerhaeuser Company? This process encompasses several steps, starting with how to formally lodge a complaint about potential discrepancies in pension calculations. Clear communication channels within Weyerhaeuser's administrative structure must be succinctly outlined for employees. Additionally, understanding the implications of unresolved claims on their financial future adds depth to this inquiry.

Claims Process: If an employee believes there has been an error in their pension benefit calculation, they can file a claim in writing with the Weyerhaeuser Pension Service Center. The employee will receive a written decision within 90 days, with an additional 90-day extension if needed. If the claim is denied, the employee can appeal the decision(Weyerhaeuser Company_Ef…).

What kind of healthcare benefits is available to retirees from Weyerhaeuser Company, and how do these benefits interplay with the pensions under the Weyerhaeuser Pension Plan? Examining the intersection of pension benefits with retiree healthcare provisions can reveal critical information for employees planning their post-retirement lives. Employees should understand what healthcare coverage entails and how it could affect their overall financial wellbeing once they transition into retirement.

How does Weyerhaeuser Company ensure compliance with the Employee Retirement Income Security Act (ERISA) with respect to the administration of the Pension Plan? ERISA sets forth numerous regulations that govern employee benefits plans, and understanding how Weyerhaeuser adheres to these guidelines is important for employees. This inquiry should focus on specific practices that ensure transparency, equity, and protection for employees' pension rights under this federal law.

ERISA Compliance: Weyerhaeuser ensures compliance with ERISA by providing employees with the necessary documents, including summary plan descriptions and annual reports. ERISA also grants employees the right to obtain information about their benefits, including the Plan's funding status and eligibility requirements(Weyerhaeuser Company_Ef…).

What potential risks should employees be aware of when considering the termination of the Weyerhaeuser Pension Plan, and what recourse do they have if this occurs? Understanding the risks associated with plan termination, including the financial impact on retirement savings, is crucial for employees. Furthermore, Weyerhaeuser's obligations in such a scenario and the options available to employeesâ€”whether itâ€™s transitioning to another plan or taking a lump-sum payoutâ€”should be addressed.

Plan Termination Risks: Employees should be aware that if Weyerhaeuser terminates the pension plan, their benefits may still be insured by the Pension Benefit Guaranty Corporation (PBGC). However, some benefits, such as recent increases or non-vested benefits, may not be fully covered by PBGC(Weyerhaeuser Company_Ef…).

What resources does Weyerhaeuser Company provide for employees to calculate their estimated benefits before retirement, and how can these estimates assist in retirement planning? Tools and resources offered by Weyerhaeuser to facilitate personal benefit calculations play a pivotal role in financial planning. Employees should know where to access these tools, which can provide insights into potential retirement income and underscore the importance of proactive planning.

Resources for Estimating Benefits: Weyerhaeuser provides tools and resources, such as benefit estimate calculators, through the Weyerhaeuser Pension Service Center. Employees are encouraged to use these tools to help with retirement planning, including understanding potential income and preparing for retirement(Weyerhaeuser Company_Ef…).

How can Weyerhaeuser employees effectively contact the Pension Service Center for detailed inquiries regarding their pension benefits or the claims process? Efficient communication with the Pension Service Center is vital for employees seeking clarification about their benefits. Detailing the various methods availableâ€”such as phone, mail, or onlineâ€”will ensure that employees can swiftly address their questions and concerns regarding the Weyerhaeuser Pension Plan.

Contacting the Pension Service Center: Employees can contact the Weyerhaeuser Pension Service Center via phone at 866-288-2510 or online through the company's benefits portal. The service center provides assistance with benefit calculations, claims, and general inquiries about the pension plan(Weyerhaeuser Company_Ef…).

What changes to the Weyerhaeuser Pension Plan should employees be aware of that might affect their benefits or participation in the plan, and how are these communicated to employees? Awareness of any amendments to the pension plan is essential for employees to understand how their benefits may be influenced. Weyerhaeuser's approach to communicating these changes, whether through direct correspondence or public announcements, is key to ensuring that employees stay informed and can adapt their retirement planning accordingly.

Plan Changes: Employees will be notified of any material changes to the Weyerhaeuser Pension Plan through Summary of Material Modifications (SMM) documents. It is essential for employees to stay informed of these updates, as they can impact pension benefits and participation(Weyerhaeuser Company_Ef…).