October 19–25, 2026 is National Estate Planning Awareness Week, and most people take that as a reminder to look at their will or trust. That is a good start. But for many families across Northwest Indiana and Greater Chicagoland, the documents that decide where most of the money goes aren't the will at all.
They are the beneficiary forms on retirement accounts, life insurance policies, annuities, and bank or brokerage accounts. Those forms are often filled out once, years ago, and rarely looked at again. This week is a good time to change that.
Quick Answer
Beneficiary designations on accounts like IRAs, 401(k)s, life insurance, annuities, and transfer-on-death (TOD) or payable-on-death (POD) accounts generally pass directly to the people named on the form, regardless of what your will says. That makes them one of the most important, and most overlooked, parts of an estate plan.
A good rule of thumb is to review every beneficiary designation at least once a year and after any major life event: marriage, divorce, a death in the family, a new child or grandchild, or a change in a beneficiary's circumstances. Confirm that each form names a primary and contingent beneficiary, and that it still matches your will, trust, and broader wishes.
Why Beneficiary Designations Can Override Your Will
A will controls assets that pass through probate. Accounts with a named beneficiary generally don't go through probate. They transfer by contract directly to whoever is listed on the form on file with the plan, custodian, or insurance company.
In practice, that means a will updated last year can't fix a beneficiary form that was never changed. If an IRA still names a former spouse, or a life insurance policy names a parent who has since passed away, the will usually has no say over those dollars.
For many retirees and pre-retirees, retirement accounts and life insurance make up a large share of what they own. So the forms that govern those accounts deserve the same attention as the will or trust itself. If you're still sorting out which documents you need, our article on the difference between a will and a trust is a helpful starting point.
Which Accounts to Review
Most households have beneficiary designations in more places than they realize. Each one is held by a different institution, which is why they tend to drift out of sync.
Account type
Where the form is kept
What to watch for
IRAs and Roth IRAs
The IRA custodian
Most non-spouse beneficiaries must generally empty an inherited IRA within 10 years, which affects taxes for heirs
401(k), 403(b), and other employer plans
The plan administrator
A spouse generally has rights to the account unless they waived them in writing; old plans from prior employers are easy to forget
Life insurance
The insurance company
Group coverage through work often has its own separate form
Annuities
The insurance company
Payout options and whether income has started can change what beneficiaries receive
TOD and POD accounts
The bank or brokerage firm
Checking, savings, CDs, and brokerage accounts can each carry their own designation
A few of these deserve a closer look. If you have an old 401(k) sitting with a former employer, its beneficiary form may be the oldest one you have; our guide to options for an old 401(k) covers that in more detail. For annuities, see what happens to an annuity when you die, and for life insurance, how coverage fits into your legacy.
Life Events That Should Trigger a Review
An annual review is a good habit, but certain events make an update urgent. Any of these is a reason to pull out every beneficiary form, not just one:
• Marriage or remarriage. A new spouse isn't added automatically to most forms.
• Divorce. Some state laws may revoke a former spouse as beneficiary, but federal law governing many employer plans can override those state rules. Updating the form directly is the clearest path.
• Death of a named beneficiary. If a primary beneficiary has passed and no contingent is named, the account may default to your estate.
• A new child or grandchild. Younger family members may need to be added, and a minor usually can't receive assets directly.
• Blended families. Children from a prior marriage, stepchildren, and a current spouse can all have different expectations. The forms should reflect your actual intentions.
• A change in a beneficiary's circumstances. Special needs, creditor issues, or concerns about a beneficiary's maturity may call for a trust rather than a direct designation.
• Opening, rolling over, or consolidating accounts. A new account or a rollover often requires a brand-new beneficiary form.
These same moments are also a good time to revisit your other documents, including your power of attorney.
Common Beneficiary Mistakes
These are some of the most frequent issues that come up when families review their designations:
1. No contingent beneficiary. If the primary beneficiary dies first and no backup is named, the account may pass through your estate and probate.
2. Naming "my estate" as beneficiary. This sends the account through probate and, for retirement accounts, can limit how long heirs have to withdraw the money.
3. Naming a minor directly. Financial institutions generally can't pay a minor outright, which may require a court-appointed guardian or custodian.
4. Forms that don't match the will or trust. If your trust is meant to receive certain assets, the beneficiary forms need to say so.
5. Not understanding per stirpes vs. per capita. These terms decide whether a deceased child's share passes to their children or is split among the surviving beneficiaries.
6. Assuming the form is on file. Paperwork gets lost in mergers, plan changes, and custodian transitions. Request a confirmation copy rather than relying on memory.
None of these is complicated to fix, but each one is much harder to correct after the fact. Even families whose estates are well below the federal exemption benefit from getting this right; we covered why in Do I Still Need Estate Planning If My Estate Is Under $15 Million?
Your Beneficiary Designation Review Checklist
Use this checklist during Estate Planning Awareness Week, or at any point in the year:
• ☐ List every account and policy that carries a beneficiary: IRAs, Roth IRAs, 401(k)s and other employer plans, life insurance (including group coverage through work), annuities, and TOD/POD bank and brokerage accounts.
• ☐ Request a current copy of each beneficiary form from the custodian, plan, or insurance company.
• ☐ Confirm each form names both a primary and a contingent beneficiary.
• ☐ Check that names are spelled correctly and that each beneficiary is clearly identified.
• ☐ Make sure no former spouse, deceased person, or unintended person is still listed.
• ☐ Confirm percentages add up to 100% and reflect what you intend.
• ☐ Decide whether shares should pass per stirpes or per capita, and confirm the form reflects that choice.
• ☐ Review whether any minor or vulnerable beneficiary should receive assets through a trust instead.
• ☐ Compare the forms against your will and trust with your estate planning attorney.
• ☐ Keep copies of the confirmed forms with your estate planning documents, and set a reminder to review again next year.
Frequently Asked Questions
Does a beneficiary designation override a will? In most cases, yes. Accounts with a named beneficiary generally pass directly to that person by contract, outside of probate, regardless of what the will says.
How often should I review my beneficiary designations? At least once a year, and after any major life event such as marriage, divorce, a death in the family, or the birth of a child or grandchild.
What happens if I don't name a contingent beneficiary? If the primary beneficiary dies before you and no contingent is named, the account may default to your estate. That can mean probate, delays, and in some cases less favorable tax treatment for heirs.
Can I name a trust as a beneficiary? Yes. A trust can be named as beneficiary on many accounts, which may help when a beneficiary is a minor or needs added oversight. The trust needs to be drafted with this in mind, so it's a conversation to have with your estate planning attorney.
Do I need to update beneficiaries after a divorce? It's generally best to update them directly. Some state laws may remove a former spouse automatically, but federal rules for many employer plans can override those laws, so the form on file may still control.
What does per stirpes mean on a beneficiary form? Per stirpes means that if a beneficiary dies before you, their share passes down to their own descendants rather than being divided among the remaining beneficiaries.
Take the Next Step
Beneficiary designations are one piece of a larger picture. How your retirement income, taxes, and estate plan work together determines what you'll live on and what you'll eventually pass on.
Download our complimentary eBook, A Guide to Retirement Income Planning: Strategies for Sustainable Income. It walks through retirement income in seven short chapters, from estimating what retirement will cost to combining Social Security, pensions, and investments. It also includes a chapter on estate planning in retirement, covering wills, trusts, gifting, and healthcare directives. Get your complimentary copy here.
Prefer to talk it through? Our firm works with pre-retirees, retirees, business owners, and families across Northwest Indiana and Greater Chicagoland, from our office in Valparaiso. We coordinate with your estate planning attorney and tax professional so your accounts, beneficiary forms, and documents work together. Schedule a complimentary conversation or call our office at (219) 312-4128.
This article is provided for informational and educational purposes only and does not constitute investment, tax, or legal advice. Information is general in nature and not tailored to any individual's circumstances. Consult your estate planning attorney and tax professional before making changes to beneficiary designations or estate planning documents.
Investment advisory services offered through Redhawk Wealth Advisors, Inc., an SEC-Registered Investment Advisor. SEC registration does not imply any level of skill or understanding. Redhawk Wealth Advisors and Patten Financial Group are unaffiliated and separate legal entities.
