You routinely check your retirement, bank, and investment balances, but when did you last review your beneficiary designations? These designations on accounts like IRAs, life insurance, and 401(k)s determine who inherits your assets—and they override instructions in your will or trust.

Life changes, such as marriage, divorce, births, or deaths, may impact your estate planning goals. Updating beneficiary designations can ensure they align with your current intentions and help avoid probate delays.

Common Accounts with Beneficiary Designations

Several accounts allow you to name a beneficiary, ensuring assets pass directly to loved ones:

• Retirement accounts: 401(k), IRA, Roth IRA
• Life insurance policies
• Annuities
• Health savings accounts (HSAs)
• 529 college savings plans
• Brokerage accounts
• Certificates of deposit (CDs)
• Real estate (in states with transfer-on-death deeds)

The Importance of Naming Primary and Contingent Beneficiaries

Alongside a primary beneficiary, most accounts let you name contingent beneficiaries to inherit if the primary beneficiary cannot. Without proper designations, assets could go through probate, delaying transfers and causing additional expenses.

Why Regular Reviews Matter

Beneficiary designations take priority over wills and trusts. An outdated form can result in unintended inheritance, like assets going to someone you no longer wish to include. Major life events, like a marriage or job change, warrant immediate updates. Even without recent changes, review your designations every three to five years.

How to Update Beneficiary Designations

Updating beneficiaries is simple and may require online updates, paperwork, or spousal consent. Make sure details are accurate—use full legal names, birth dates, and Social Security numbers for clarity.

Avoid Probate and Protect Your Legacy

Failing to update beneficiaries can lead to probate, delays, and unintended inheritances. By regularly reviewing and updating your beneficiary designations, you can keep your estate plan aligned with your wishes. Speak with an estate planning attorney to ensure your beneficiary designations support your legacy and benefit your loved ones.