We tell our clients to think of their financial plan like a well-kept garden. Every so often, you don’t need a full overhaul—you just need to walk around, make sure the gates still latch, and pull a few weeds before they spread.
That’s what reviewing the beneficiaries on your investment accounts is: a simple checkup that can prevent a lot of heartache later.
Why this matters more than most people realize
Beneficiary designations on accounts like IRAs, 401(k)s, annuities, life insurance policies, and many “transfer on death” (TOD) brokerage accounts often determine who receives the money when you pass away. And in many cases, these designations can override what you think your will covers.
The institution holding the account typically follows the most recent beneficiary form on file. That can make transfers fast and efficient—if the form reflects your current wishes.
A common example of unintended consequences
Here’s a situation we’ve seen in one form or another:
Someone names their spouse as beneficiary years ago. Life changes—there’s a divorce, a remarriage, maybe kids or grandkids enter the picture. They update their will and assume everything is taken care of.
But the beneficiary form on an old retirement account never gets updated.
When they pass away, that account may go to the ex-spouse listed on the form—creating shock, conflict, delays, and sometimes legal costs. Even if everyone has good intentions, it can turn into a stressful mess at exactly the wrong time.
The hard truth is this: good planning isn’t just about what you meant to do—it’s about what’s actually on paper.
A quick beneficiary review checklist
This doesn’t have to be complicated. A simple review usually includes:
- Confirming your primary and contingent (backup) beneficiaries are listed
- Making sure names and contact info are current
- Checking whether your choices still match your family situation today
- Looking for inconsistencies across accounts (one account says spouse, another says kids, another says “estate”)
A good rule of thumb: review beneficiaries once a year and anytime there’s a major life change (marriage, divorce, birth, death, etc.).
Bottom line
This is a small maintenance task that can make a big difference for the people you care about.
If you’d like, we can review your beneficiary designations together and make sure they still line up with your intentions. If legal or estate updates are needed, we’ll encourage you to coordinate with your estate planning attorney.