When Was the Last Time You Reviewed Your Beneficiaries?

Beneficiary designations are one of the most important yet overlooked parts of a financial plan. Unlike a will, which goes through probate and can be updated through the legal system, beneficiary designations on accounts such as IRAs, retirement plans, and insurance policies typically override instructions in a will. This means the name on the account form is what ultimately determines who receives the asset.

Life changes are the most common reason to review your beneficiaries. Events such as marriage, divorce, the birth of a child or grandchild, or the passing of a loved one should all trigger a review. Even without major life events, it is still a good practice to periodically confirm that your designations still reflect your current wishes.

Common mistakes include failing to update old employer retirement accounts, naming individuals without listing contingent beneficiaries, or assuming a will controls all assets. These small oversights can create unintended outcomes for your loved ones.

A quick review today can help ensure your accounts align with your intentions and avoid unnecessary complications in the future.