Update Beneficiaries on Financial Accounts & Life Insurance

Why

Beneficiary designations on financial accounts (like bank accounts, retirement funds) and life insurance policies determine how those assets are distributed upon your death. This often overrides instructions in a will. Outdated or incorrect beneficiary information can lead to assets not going to your intended recipients, causing significant financial distress or legal complications for your loved ones.

Action

• Make a list of all your financial accounts that allow beneficiary designations. This typically includes:
  • Bank accounts (checking, savings – may offer Payable on Death (POD) options)
  • Retirement accounts (401(k), IRA, etc.)
  • Life insurance policies
  • Investment accounts (brokerage, mutual funds – may offer Transfer on Death (TOD) options)
  • Annuities
• For each account:
  • Contact the financial institution or log into your online portal to review the current beneficiary designations.
  • Verify that the listed primary and contingent beneficiaries are still correct and reflect your current wishes.
  • Ensure you have the full legal names, correct relationship details, and ideally, contact information for each beneficiary.
  • Update any outdated information or change beneficiaries as needed due to life events (marriage, divorce, birth, death).
• Consider consulting with a financial advisor or estate planning attorney for guidance, especially if your situation is complex (e.g., blended families, special needs beneficiaries).
• Securely save or print confirmation of any updated beneficiary designations for your records.

Remember

This is a critical part of estate planning. Life events can quickly make old designations obsolete. Keeping this information current ensures your assets are distributed according to your wishes with minimal hassle for your heirs.