A Will Can't Override a Beneficiary Form: Here's What You Need to Know

When it comes to securing your family’s future, many people believe that having a will is enough. It’s a common misconception, but one that can lead to unintended consequences. The truth is, no matter how detailed or carefully crafted your will is, it simply cannot override a beneficiary form. And here’s why.

The Difference Between a Will and a Beneficiary Form

First, let's clear up a common misunderstanding: a will is not a financial document. It’s a legal document that expresses your wishes regarding the distribution of your assets after your death. However, it doesn't hold power over certain types of accounts, like life insurance policies, retirement plans, or any other accounts that require a designated beneficiary.

The most recent beneficiary form on file with your financial institution or insurance company will always be used to determine who receives the funds from these accounts. That means even if your will says one thing, but your beneficiary form says another, the beneficiary form wins—every time.

Why You Should Keep Your Beneficiary Forms Updated

Imagine this: you’ve gone through a divorce, but you haven’t updated your beneficiary form. Years later, you pass away, and your ex-spouse receives everything, despite your will stating that your children should be the beneficiaries. It’s a devastating scenario, but one that happens all too often.

This is why it’s so crucial to keep your beneficiary forms up to date. Don’t leave it to chance or assume that your will can fix any oversights. Take control now to ensure your assets are distributed according to your true wishes.

5 Steps to Updating Your Beneficiary Information

Now that you understand the importance, let’s walk through the steps to ensure your beneficiary information is always accurate and up-to-date:

1. Locate Your Current Beneficiary Forms Start by identifying all the accounts that require a beneficiary designation—life insurance policies, retirement accounts, annuities, etc. Contact your financial institutions or insurance providers to get a copy of the current forms on file.

2. Review and Compare with Your Will Once you have your beneficiary forms, compare them with your will. Make sure that the designated beneficiaries on each form align with your current wishes. Remember, if there’s a discrepancy, the beneficiary form takes precedence.

3. Make Necessary Updates If your life circumstances have changed—whether it’s due to a marriage, divorce, the birth of a child, or even just a change of heart—make sure to update your beneficiary forms accordingly. Request new forms from your financial institutions or insurance providers and fill them out with your desired beneficiaries.

4. Submit the Updated Forms After completing the new forms, submit them back to the appropriate institutions. Don’t forget to request confirmation that the changes have been received and processed.

5. Regularly Review Your Beneficiary Designations Life is always evolving, and so should your beneficiary forms. Set a reminder to review your beneficiary designations annually or after any major life event. This ensures that your forms always reflect your current wishes.

Final Thoughts - Let’s Be Clear

Updating your beneficiary forms is a simple yet powerful way to ensure your legacy is honored exactly as you intend. Don’t let outdated paperwork lead to unnecessary heartache for your loved ones. Take the time now to review, update, and secure your family’s future. Remember, your will is important, but when it comes to financial documents, your beneficiary forms have the final say. Make sure they’re saying what you really mean.