When most people think about estate planning, they focus on their will or trust. But there’s a silent saboteur that could completely derail even the most thoughtfully drafted estate plan—beneficiary designations.
That’s right. If the beneficiaries listed on your retirement accounts, life insurance policies, or bank accounts don’t match your estate plan, the law says those designations take priority. That means your assets might go to someone you didn’t intend—no matter what your will says. Let’s break this down and help you avoid one of the most common (and costly) estate planning mistakes.
💥 Why Beneficiary Designations Matter More Than Your Will
Beneficiary designations are legally binding and are treated as contracts between you and the financial institution. So even if your will says one thing, if your life insurance policy says the money goes to your ex-spouse… guess what? That’s who gets it.
This is why we always say:
Your estate plan is only as strong as your beneficiary designations.
📌 Common Examples of Conflicts
Here are a few real-life scenarios we’ve seen:
You updated your will to leave everything equally to your kids, but your 401(k) still names your oldest child as the sole beneficiary.
You named a now-deceased or estranged relative as a beneficiary and forgot to change
You created a trust for asset protection, but your life insurance still lists your children individually—exposing them to probate or legal challenges.
✅ What You Should Do (Right Now)
To make sure your estate plan works the way you want it to, here are 3 quick steps you can take today:
Review all beneficiary designations. This includes life insurance, IRAs, 401(k)s, pensions, bank accounts, and brokerage accounts.
Make sure they match your estate planning goals. If your will says everything goes to your trust or certain individuals, your designations should reflect that.
Work with an estate planning attorney. We’ll help ensure your documents and beneficiary designations are working together—not against each other.
❤️ Your Legacy Deserves Alignment
It’s easy to overlook the fine print, but something as simple as an outdated name on a form could cost your family peace, money, and time.
At Entrusted Legacy Law, we specialize in building estate plans that are holistic and heart-centered—because your legacy deserves to be protected with care and clarity
Don’t let mismatched paperwork undo your planning.👉 Schedule a free consultation with our estate planning team today: https://book.entrustedlegacy.law/#/introcall
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