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You love your dog. Your dog loves you. In the unfortunate and unlikely event that your dog should outlive you; you may wish to leave money behind to care for him -- a noble sentiment for your noble, four-legged survivor.

While you can arrange this though your will and a trust account please don't try it with the beneficiary form for your 401(k). Rover won't receive a check for the remaining balance in your account for a variety of reasons, including the fact that he can't sign the back -- nor does he have a bank account. Lastly, as a few comedians have pointed out, Rover doesn't have any pockets so where would he put the money?

This same logic applies when a minor is designated as the beneficiary. My two-year old is more likely to eat a check than sign it and a diaper is a time bomb when used as a wallet.

So, we've ruled out dogs, cats, parakeets and minor children as "people" that can be listed on your beneficiary form. Who can you list? Adults. The exact age of majority (a fancy way of saying "adult") varies by state but is typically as young as 18 or as old as 21.

Incidentally, if you're married your spouse must be listed as your primary beneficiary unless he or she has signed away those rights in the presence of a notary. How you would broach that topic with your spouse is up to you. Good luck with that conversation.

To further confirm, "married" means not legally divorced. Once upon a time you said "I do" and while your feelings may have changed simply saying "I don't" doesn't actually change anything. Until a divorce is legally finalized you are still legally married and, unless your spouse waives their rights, they will receive the proceeds of your account even if you remove them from your beneficiary form.

Those of you who have children from a prior marriage may want to take particular care with the beneficiary designation process as your new spouse's interests may not align with those of your children.

If you're not married you can name any adult you desire as your beneficiary. For that matter, you can name several adults and have the proceeds split between them. There are further nuances to this approach. For example, a per stirpes designation between two beneficiaries means that if one beneficiary dies the proceeds will pass to their heirs.

Once you've settled on your selection for your primary beneficiary (or beneficiaries) you should also name at least one contingent beneficiary. The contingent beneficiary will receive the proceeds of your account if your primary beneficiary is not alive to receive it. If you're married - in which case it's likely that your spouse is the primary beneficiary - it's critical that you name a contingent beneficiary as an accident could result in the death of both you and your spouse. Morbid -- but true.

Remember, the same rules apply to contingent beneficiaries: no dogs, no cats and no minor children.

I mentioned wills earlier. While it's not a fun topic, it's a very good idea to have one. If you have children it's a necessity. A properly executed will dictates not only the distribution of your assets but also the guardian of your children. If you and your spouse die without a will your assets and your children won't vanish. Instead, you will have triggered the probate process. Ultimately your assets and heirs will be addressed through probate but you have then invited increased delay, increased costs and the possibility that your wishes will not be carried out after your death.

Lastly, a will can allow you to set up a trust as the recipient of your 401(k) account. It will also allow you to consider all of the potential options related to your beneficiary designation - a little more complicated than you might have initially thought? Don't forget about Rover...

Marshall J. Cobb, CRSP, is president and founder of Cobb Retirement Solutions, LLC., an independent, fee-only firm offering qualified plan analysis and oversight exclusively to corporations and organizations. Cobb's first-hand knowledge as a veteran representative of retirement plan vendors beginning in 1990 gives him a unique perspective as he advises his clients. Cobb runs his office -- based in Houston, Texas -- with employees and clients across the country.

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