Here is something that catches many families off guard: beneficiary designations on your accounts override your will. That means if your bank account, life insurance, or retirement account lists a former spouse, a deceased relative, or an outdated contact, that designation controls who gets the money — no matter what your will says. A 30-minute audit today can prevent a legal nightmare for your family.

Why Beneficiary Designations Matter More Than Your Will

When you die, assets with named beneficiaries pass directly to those individuals, completely bypassing probate and your will. This is efficient when designations are current, but catastrophic when they are outdated. Banks, insurers, and brokerages have no obligation to check whether your beneficiary choices still make sense.

67%
of Americans have at least one outdated beneficiary designation
$70B+
in assets transfer to unintended recipients each year due to outdated designations
30 min
is all it takes to review and update all your beneficiary designations

Accounts That Have Beneficiary Designations

  • 401(k) and 403(b) retirement accounts
  • Traditional and Roth IRAs
  • Life insurance policies
  • Annuities
  • Bank accounts with payable-on-death (POD) designations
  • Brokerage and investment accounts with transfer-on-death (TOD) designations
  • Pension plans
  • Health savings accounts (HSAs)

Your 30-Minute Beneficiary Audit

Step-by-Step Audit Process

1
List Every Account
Write down every financial account you own: banks, brokerages, insurance policies, retirement accounts. Use your one-page finance sheet if you have one.
2
Call or Log In to Each
For each account, check who is currently listed as primary and contingent beneficiary. If you cannot find it online, call the institution.
3
Check for These Problems
Is a deceased person still listed? A former spouse? Someone you no longer trust? Is there no contingent beneficiary? Any of these needs immediate updating.
4
Update What Needs Changing
Most institutions let you update beneficiaries by phone, online, or with a simple form. It usually takes less than 10 minutes per account.
5
Align With Your Will
Make sure your beneficiary designations and your will tell the same story. If they conflict, the beneficiary designation wins — and your will is irrelevant for that asset.

Common Mistakes That Cause Problems

Beneficiary Pitfalls and Fixes

MistakeWhat HappensThe Fix
Former spouse still listedThey get the money, even after divorceUpdate immediately after any divorce
Deceased beneficiaryAssets go through probate, causing delaysName a living person or trust
No contingent beneficiaryIf primary dies first, assets go to probateAlways name a backup beneficiary
Minor child as beneficiaryCourt appoints a guardian to manage moneyName a trust for minors instead
No beneficiary at allAsset goes through probate, state law decidesName both primary and contingent beneficiaries

Keeping It Current Going Forward

Set a calendar reminder to review beneficiaries once a year, perhaps on your birthday or at tax time. Any major life event — a death, a divorce, a falling out, a new grandchild — should trigger an immediate review.

This 30-minute task is one of the most impactful things you can do for your family. It prevents confusion, legal battles, and the heartbreak of assets going to the wrong person. Do it this week, and you can rest easy knowing your wishes will be honored.