Chances are you have a beneficiary. They are pretty common, from retirement accounts to trusts to wills. And they figure prominently in life insurance policies.

Simply put, a beneficiary is the person (or legal entity) that will receive the proceeds from a financial vehicle once the owner passes. So, they typically tend to get named every time an account is opened or policy purchased.

But just as common are certain mistakes that get made around beneficiary designations. Here are five that financial professionals like to warn people about when they decide who should be their beneficiary.

You have built your business with the hopes that it will withstand the test of time. Unfortunately, there are a lot of elements out of your control that can affect the success of your business such as death or disability. It is possible to plan for these contingencies and ensure that both your business and the well-being of your family are able to survive an unforeseen event.