When people think about estate planning, they often focus on a will or living trust. But many assets pass outside those documents—through beneficiary designations. If those forms are outdated, your assets may go to the wrong person, even if your will says otherwise.

A quick annual review can help prevent unintended outcomes, reduce delays, and make things easier for your family.

Why beneficiary designations matter

Beneficiary designations commonly control who receives assets such as:

• Retirement accounts (IRAs and employer plans)
• Life insurance policies
• Annuities
• 529 education savings plans

In many cases, the most recent beneficiary form on file determines who inherits the asset—regardless of what your will or trust says. That’s why beneficiary reviews are especially important after major life events.

When to review and update beneficiaries

A good rule of thumb is to review beneficiary designations:

• at least annually, and
• after major life changes, such as:
  • marriage or remarriage
  • divorce
  • birth or adoption of a child
  • death of a spouse, child, or other intended beneficiary
  • significant changes in wealth or business ownership

Even if your intent hasn’t changed, confirming what’s on file can prevent surprises.

What to review (and where errors happen)

Start by confirming you’ve completed beneficiary forms for every applicable asset. Then verify that each form reflects your current wishes.

Common issues include:

• an ex-spouse still listed as primary beneficiary
• no contingent (secondary) beneficiary listed
• beneficiaries named inconsistently with the broader estate plan
• outdated contact information that slows down claims and distributions

If you’ve never filed beneficiary forms for certain accounts, submit them as soon as possible. If you filed them years ago, update them before they become a problem.

Don’t overlook TOD/POD designations for bank and brokerage accounts

Many banks and brokerage firms allow you to name beneficiaries using:

• TOD (transfer-on-death) for brokerage accounts, and/or
• POD (payable-on-death) for bank accounts.

These designations can help assets transfer quickly and often avoid probate, which may reduce administrative burden for your family. To change beneficiaries, you typically submit an updated TOD/POD form.

Spousal consent and ownership rules can affect changes

If you’re married, your spouse’s consent may be required for certain beneficiary changes. Requirements can vary based on:

• the type of asset (especially retirement plans),
• plan or contract terms, and
• federal and state law (including community property considerations).

Also consider how assets are titled. For example, joint tenancy with right of survivorship generally transfers ownership automatically to the surviving joint owner. This can avoid probate, but changing title can have tax, creditor, control, and estate planning consequences—so it’s best reviewed with your tax, legal, and financial advisors.

Name contingent beneficiaries to avoid gaps and delays

Many forms allow you to name contingent beneficiaries (also called secondary or successor beneficiaries). These beneficiaries inherit the asset if the primary beneficiary dies before you.

Contingent beneficiaries can help:

• keep assets out of probate,
• reduce administrative delays, and
• ensure your intent is carried out even if circumstances change.

You may name individuals, a trust, or a charity depending on your goals and family situation.

Beneficiary choices can affect income taxes—especially for retirement accounts

Beneficiary designations can also impact income tax timing, particularly for retirement accounts. Depending on who inherits, distribution rules may differ (for example, whether distributions must occur within a certain period or can be spread over time).

Also, if you fail to name a beneficiary (or name your estate as beneficiary), the asset may be more likely to go through probate and could trigger less favorable administrative or tax outcomes.

A simple step that protects your plan

Reviewing beneficiary designations is one of the simplest estate planning tasks—and one of the most important. Set a recurring annual reminder, and revisit designations after major life events.

If you’d like help aligning beneficiary forms with your broader estate and tax plan, coordinate with your estate planning, tax, and financial advisors.