Failing to Update Beneficiary Designations
Retirement accounts, life insurance and annuities all
avoid probate with a designated beneficiary for each
account. These beneficiary designations will override any
contrary instructions in a will or trust. These accounts can
represent a substantial portion of an estate and need to
be coordinated with other aspects of your estate plan. A
common error is failing to update these beneficiaries in
response to life events, resulting in funds being distributed contrary to your intent. The beneficiary designations on all accounts need to be periodically reviewed, and updated as needed, to reflect changed circumstances and life events to remain coordinated with your estate plan.