Don’t Forget Your Beneficiary Designations

While we often focus on the terms of our will or trust when reviewing our estate plan, too often we forget to review our beneficiary designations as well.

Reviewing your beneficiary designations is extremely important because those designations override what’s written in your will or trust. Here’s why it matters:

1. Ensures your assets go where you intend

• Retirement accounts (401(k), IRA), life insurance policies, and payable-on-death (POD) accounts pass directly to the beneficiaries you name.

• If you forget to update them after major life events (marriage, divorce, children, death of a loved one), the wrong person could inherit those assets.

2. Prevents disputes

• Outdated or conflicting designations often lead to family disputes or even court battles.

3. Avoids unintended consequences

• Ex-spouses, estranged relatives, or even deceased beneficiaries might still be listed.

• Without updates, assets may go to unintended parties or be tied up in probate.

4. Protects minors or vulnerable beneficiaries

• Naming a minor outright can complicate matters, since a court may need to appoint a conservator. Reviewing allows you to adjust designations to trusts or custodial accounts if needed.

👉 Best practice: Review your beneficiary designations at least once a year and after any major life event—such as marriage, divorce, birth, death, or opening new financial accounts. An attorney can also help ensure your designations are up to date and address any unexpected contingencies.