Estate Planning

Beneficiary Designation

A beneficiary designation is your written instruction to a specific financial account — retirement account, life insurance policy, or bank account — telling it who should receive that money when you die. Here is the critical point most people do not know: a beneficiary designation overrides your will. Completely. Every time. In every jurisdiction. If your retirement account still names your ex-spouse from a divorce fifteen years ago, your ex-spouse receives that money. The will cannot override it. Checking and updating your beneficiary designations takes about four minutes per account and may be the most important financial action you ever take.

In short

A beneficiary designation tells an account who gets that money when you die — and it overrides your will every time. Four minutes to check yours could redirect hundreds of thousands of dollars.

Also known as

Death benefit nomination · Transfer on death · Payable on death designation