Family & Legacy

When Should I Review My Beneficiaries?

Beneficiary designations are among the most consequential documents in a financial life, and among the most neglected. They are often completed once, during enrollment paperwork, and never looked at again.

Here is why that matters: for retirement accounts, life insurance, and annuities, the beneficiary designation generally controls who receives the asset. It typically overrides what your will says. A will directs assets that pass through your estate; a designation directs the account itself.

The result is that outdated designations can quietly undo an otherwise careful estate plan — sending assets to a former spouse, to someone who has passed away, or to no one specified at all.

This may be worth discussing if…

You have married, divorced, or remarried
A child or grandchild has been born or adopted
A named beneficiary has died or become incapacitated
You have created or updated a trust or will
You have opened, rolled over, or consolidated accounts
You cannot readily say who is currently named on each account
It has simply been more than a few years since the last review

Things to consider

Both sides of the decision, laid out plainly.

Designations generally override wills

Updating a will does not update account designations. Both need attention, and they need to agree with each other.

Name contingent beneficiaries too

If a primary beneficiary predeceases you and no contingent is named, the asset may default to your estate — often a slower and less private outcome.

Rollovers can reset designations

Moving an account to a new institution frequently creates a new designation that does not carry over. This is one of the most common gaps we find.

Naming a trust requires care

Trusts can be appropriate beneficiaries, particularly for minors or complex situations, but retirement accounts payable to trusts follow specific rules. This is a coordinated legal and financial decision.

Leaving assets to a minor takes planning

Minors generally cannot directly manage inherited property, so a custodial, trust, or court-supervised arrangement may be required depending on the asset and applicable state law.

Details matter

Misspelled names, missing dates of birth, outdated addresses, and percentages that don't total correctly all create delays for the people you're trying to help.

Not every account is covered

Taxable brokerage and bank accounts may use transfer-on-death or payable-on-death instructions instead. Those should be reviewed on the same schedule.

Questions to ask Rob

Can we review the current beneficiary designations on every account together?
Are there accounts where no beneficiary or contingent is named?
Do my designations match what my estate documents intend?
Should any beneficiary be a trust rather than an individual?
How often should we build this review into our meetings?

Questions to discuss with your tax or legal professional

Do my designations align with my will and any trusts?
Is naming a trust as beneficiary appropriate for my retirement accounts?
Are there state law considerations that affect my designations?
Should any beneficiary arrangement be structured differently for tax reasons?

Key takeaway

Beneficiary designations quietly control who receives most retirement and insurance assets. Review them after every major life event, and confirm them any time an account moves to a new institution.

Still have questions?

Every situation has details a general guide can't cover. A short conversation is usually the fastest way to sort out what applies to you.

Schedule a Conversation With Rob