Last updated: December 2025

Beneficiary designations are one of the most powerful parts of an estate plan because they often control how certain assets transfer—sometimes outside your will. That can be great when things are updated and consistent, and a disaster when they’re outdated.

Key takeaways

• Beneficiary forms may override what your will says for that account.
• Review after major life events.
• Always name backups (contingent beneficiaries).

Where beneficiaries are commonly used

Many people name beneficiaries on:

• life insurance policies
• retirement accounts
• payable-on-death (POD) bank accounts
• transfer-on-death (TOD) brokerage accounts

Common mistakes (and how to avoid them)

The biggest issues are simple: people forget to update after divorce, never name contingent beneficiaries, or name minors directly without planning for management. Another common problem is inconsistency—your will says one thing, your accounts say another, and the accounts usually win for those assets.

A simple annual habit

Once a year (or after a big life change), check your beneficiary lists and confirm they still reflect your intentions.

FAQ

Can I name a trust as beneficiary? Sometimes. It can be useful in specific situations, but it’s worth getting guidance so it’s done correctly.