When Did You Last Review Your Beneficiaries?

When most people think about their estate plan, they picture their trust, will, or maybe their health care directives. But there’s a crucial piece that often gets overlooked—beneficiary designations.

These simple forms, often completed years ago when setting up a retirement account, life insurance policy, or bank account, can have a major impact on where your assets end up. In fact, beneficiary designations override what’s in your trust or will—meaning even the most carefully crafted estate plan can be thrown off track if your designations aren’t up to date.

Why Beneficiary Designations Matter

Beneficiary forms are legally binding documents. When you pass away, the company holding your account distributes the funds directly to the people or entities listed on the form—regardless of what your estate plan says.

This is a good thing when everything is properly coordinated, because it can help assets transfer more quickly and avoid probate. But if designations are outdated or incomplete, they can create delays, disputes, or unintended results.

For example:

• An ex-spouse remains listed as the beneficiary of a retirement account.
  
• A child born after the forms were completed is unintentionally left out.
  
• A trust is established, but accounts are never updated to reflect it.
  
• No contingent (backup) beneficiaries are named, causing the account to revert to the estate.
  

When to Review Your Beneficiaries

A good rule of thumb is to review your beneficiary designations annually—and always after major life events, such as:

• Marriage, divorce, or remarriage
  
• Birth or adoption of a child or grandchild
  
• Death of a loved one or named beneficiary
  
• Establishing or updating your trust
  
• Opening new retirement, investment, or insurance accounts
  

This simple check ensures your assets flow exactly where you want them to—and that your estate plan works as a cohesive whole.

How to Review Them

1. Gather Your Accounts
   Make a list of all retirement accounts, insurance policies, bank accounts, and investment accounts.
   
2. Log In or Contact the Institution
   Most companies allow you to view and update your beneficiary designations online. If not, call their customer service or request the forms.
   
3. Align with Your Estate Plan
   Ensure the individuals or entities listed match your current goals and your trust or will. If you’ve created a trust, you may need to list the trust as the beneficiary rather than individuals, depending on your strategy.
   
4. Add Contingents
   Don’t forget to name backup beneficiaries in case your primary beneficiaries can’t accept the asset.
   

A Small Step That Makes a Big Difference

Reviewing your beneficiary designations doesn’t take long, but it can save your loved ones confusion, delays, and even legal battles down the road. It’s one of the most effective and overlooked ways to keep your plan up to date.

If it’s been a while since you last checked, let this be your reminder: now is the perfect time.Schedule a Year-End Estate Plan Checkup to make sure your beneficiary designations and estate plan are working hand in hand to protect your family and your legacy.