You spent time creating a will. You named your heirs. You feel confident that your wishes are documented.

Here’s something worth knowing: for a significant portion of your assets, your will may not control what happens at all.

Retirement accounts, life insurance policies, annuities, and accounts with a payable-on-death designation all transfer based on beneficiary designations –  not your will. Whoever is named on those forms receives those assets directly, regardless of what your will says. The two documents don’t negotiate with each other. The beneficiary designation wins.

This becomes a serious problem in several predictable situations. A beneficiary designation naming an ex-spouse – never updated after a divorce – will transfer assets to that person even if your will and your intentions say otherwise. A designation naming a deceased individual with no contingent beneficiary named means the asset may fall into your probate estate anyway, defeating the purpose of having a designation at all. And a designation naming a minor child directly can create court complications, since minors generally cannot receive significant assets outright without a court-appointed guardian of the property.

The fix is straightforward but requires attention: review your beneficiary designations regularly, and make sure they are coordinated with your overall estate plan rather than working against it.

This is particularly important after major life events — marriage, divorce, the birth of a child, the death of a previously named beneficiary. Each of these events is a signal to revisit not just your will and trust documents, but every form on file with every financial institution and insurance company.

Beneficiary designations are powerful documents. They move money quickly, privately, and outside of probate. But that efficiency cuts both ways — when they’re outdated or misaligned, they can create outcomes you never intended.

A comprehensive estate plan accounts for all of it.

We Can Help

Ready to get your own estate plan started? Start by booking a session with this link: LEGACY PLANNING SESSION! We’ll answer your questions, go over your options and our flat fees, and decide if we want to move forward. Mention this blog and we’ll waive the $550 session fee!