Beneficiary designations — the forms naming who inherits a retirement account, life insurance policy, or payable-on-death bank account — override whatever your will says, which makes them one of the most consequential, and most commonly neglected, pieces of an estate plan.
Why beneficiary designations control over the will
Accounts with a named beneficiary pass directly to that person outside of probate, regardless of what your will states — meaning an outdated beneficiary form can send an inheritance to an ex-spouse or estranged relative even when the will says otherwise.
Life events that should trigger a review
Marriage, divorce, the birth of a child, or the death of a previously named beneficiary should all prompt an immediate review of every beneficiary designation you have — this is one of the most common estate planning gaps, since these forms are set once at account opening and then forgotten.
Naming a minor directly creates its own problems
Naming a minor child directly as a beneficiary can result in a court-supervised guardianship of the funds until they turn 18 — often avoidable by naming a trust as the beneficiary instead, with terms controlling how and when a young beneficiary actually receives the money.
Coordinating designations with the rest of your estate plan
Beneficiary designations should be reviewed alongside your will and any trusts as one coordinated plan — not as an afterthought filled out once during onboarding at a new job or bank and never revisited again.