Does a Will Override a Beneficiary Designation? The Estate Planning Step Most People Miss

If you have ever said, “My will says the kids get everything,” there is a decent chance you are only half right.

Does a will override a beneficiary designation? In many cases, no.

Many families transfer a large portion of their wealth through beneficiary designations and “transfer-on-death” instructions. If those are outdated, your intent can be perfectly written and still not come to pass.

This topic is especially important for women facing new beginnings. Divorce, widowhood, remarriage, a job change, and even an empty nest often trigger account changes. That is exactly when beneficiary forms get skipped or forgotten.

Download the Beneficiary Designation Checklist

A simple inventory you can complete in 30 minutes or less.

Download the Checklist

Prefer not to download anything? Email philweiss@apprisewealth.com with the subject line “CHECKLIST,” and we will send you a copy.

A quick story that makes the point

A court dispute I shared last year in one of my favorite reads blogs involved a man who named his girlfriend as the beneficiary on his workplace retirement plan in the late 1980s. They broke up a couple of years later. He never updated the form. Years passed. He died. The beneficiary designation on file still named the former girlfriend, and a federal court directed the employer to pay the retirement plan proceeds accordingly.

The lesson is simple. If the form on file is incorrect, the result may be incorrect as well.

This outcome is common when you fail to revisit forms, especially in ERISA-governed employer plans. It is a predictable result because of how many retirement plans are required to operate.

In other words, “I meant to change it” is not a plan.

Important note: This post is intended for general education. It is not legal advice. If you need documents drafted or updated, an estate planning attorney should lead that work. My role is to help you review and coordinate the financial moving parts so that beneficiary designations and account titling align with your goals and you understand the tax planning implications.

The surprising truth

You already have an estate plan.

Even if you have never signed a will.

Your “default plan” is created by:

Who you name on beneficiary forms
How accounts are titled
Which accounts have transfer-on-death or payable-on-death instructions
State law defaults for anything that has no instructions

That plan might match your wishes. Or it might be outdated by a decade.

Three ways assets typically transfer at death

1) By beneficiary designation

This includes many retirement accounts, insurance policies, and investment accounts with transfer-on-death instructions.

You name who receives the asset, and it generally transfers directly to them.

2) By titling

Some assets pass because of how they are owned.

A common example is jointly owned property with rights of survivorship. When one owner dies, the surviving owner automatically becomes the owner.

3) Through your estate

This is what most people think of as “the will controls it.”

The will often governs what happens to the remaining assets after the contract-driven assets have already moved.

That is why someone can have a perfectly drafted will and still end up with an outcome that surprises the family.

The power of beneficiary designations

For many accounts, completing the beneficiary form is not a suggestion or a recommendation. It provides the instructions the custodian or plan administrator must follow.

That is why beneficiary designations often take priority over what your will says. In ERISA-governed retirement plans, the “follow the plan documents” approach is reinforced by Supreme Court guidance and Department of Labor materials on beneficiary designation disputes.

When this gets riskier as wealth grows

The following situations can make it even more important to review beneficiary designations.

Multiple retirement plans across past employers
Blended families and second marriages
Trust coordination (minor children, control concerns, uneven inheritances)
Business sale proceeds or a large inheritance
Concentrated stock positions
Charitable intent

Accounts that commonly use beneficiary designations

These are the usual suspects:

401(k) and other workplace retirement plans
Traditional IRA and Roth IRA
Life insurance policies (including employer-provided coverage)
Annuities
The many bank and brokerage accounts that allow payable on death (POD) or transfer on death (TOD) instructions
Some trust arrangements (depending on how the trust is used and titled)

Beneficiary designations can also keep assets out of probate, reducing friction, time, and cost for your family.

The big misconception: “My will covers everything.”

A will is essential, but it does not automatically control:

Retirement accounts and many employer benefits
Life insurance proceeds
POD or TOD accounts
Jointly titled assets with survivorship features

In other words, if your will states one thing and your beneficiary forms say otherwise, you have created a conflict. In many cases, the beneficiary form controls that specific account.

Does a will override a beneficiary designation? The practical rule

In most cases, no. For accounts that transfer by contract, such as retirement plans, life insurance, and TOD or POD accounts, the institution typically pays the beneficiary listed on the beneficiary form, even if your will states otherwise. Rules vary by account type and plan terms, so confirm what is on file with the custodian or plan administrator.

Your will typically controls what passes through your probate estate, after those contract-driven assets have already transferred. If you want your will and your beneficiaries to work together, the key is to keep beneficiary designations up to date and aligned with your overall plan.

Life transitions that should trigger a beneficiary review

Your beneficiary designations should not be “set it and forget it.”

For women facing a new beginning, this is one of the most practical estate planning issues.

Divorce. Widowhood. A remarriage. A child turning 18. An aging parent. A move to another state.

These events are common triggers for review:

Marriage or remarriage
Divorce or separation
Death of a spouse, parent, or intended beneficiary
Birth or adoption of a child or grandchild
Job change, especially if you rolled over a retirement plan
Major change in health or caregiving responsibilities
Large inheritance, sale of a business, or meaningful shift in net worth

Beneficiary updates matter most during divorce or widowhood. An annual review helps prevent costly surprises.

Common mistakes I see

1. Only naming a primary beneficiary

If the primary beneficiary dies before you, disclaims the inheritance, or cannot be found, the account may default to plan, custodian, or state rules that may not match your plan intent. Add contingent beneficiaries to ensure a clear backup plan.

2. Naming “my estate” without understanding the tradeoffs

This can pull the asset into probate, delay distributions, increase administrative work, and, in some cases, result in less favorable tax outcomes for heirs. Use this only when it is intentional and coordinated with your attorney and overall plan.

3. Assuming divorce automatically fixes it

For many workplace retirement plans governed by federal rules, the plan administrator may still be required to follow the beneficiary form on file unless it is changed or a proper court order applies. After a divorce, promptly review and update all beneficiary forms, including those for older employer plans. If you are in an active divorce, coordinate any changes with your attorney to avoid conflicts with court orders or plan rules.

4. Forgetting about workplace benefits (H3)

Group life insurance, HSAs, pensions, and old retirement plans often have separate beneficiary settings that get missed. Do a full employer-benefits sweep each time you change jobs or benefit elections.

5. No paper trail

When heirs cannot confirm what is on file, estate settlement becomes slower and more stressful, and disputes are more likely. Save PDFs or confirmation screens for each change and keep them with your estate documents.

Apprise’s document-retention guidance explicitly calls out the need to retain estate planning documents and records of beneficiary designations.

A simple annual process that works

You do not need a legal seminar. You need a repeatable process.

Here is the annual rhythm I like.

Step 1. Take an inventory of accounts that have beneficiaries

List every account and policy. Do not rely on memory. Include older workplace plans.

If you want a simple worksheet, download the checklist at the end of this post.

Step 2. Confirm what is on file

Do not assume the online portal shows everything, especially if your plan migrated from paper forms years ago. This issue was a factor in the retirement-plan dispute described earlier.

Step 3. Align designations with your current intent

Ask a few clean questions:

If something happens to me this year, who should receive this account?
If that person is gone, who is next?
Do I want this to go directly to people, or into a trust?
If I have minor children, should I have the money held in a trust or a guardian structure? (This is attorney territory, but it is worth raising.)
Do I need to coordinate with a divorce agreement, prenuptial agreement, or other legal document?

Step 4. Add one protection layer: trusted contacts

This issue does not specifically relate to estate planning, but it is adjacent and helpful.

A trusted contact can be a practical guardrail against fraud or cognitive decline. Apprise has written about why naming a trusted contact and keeping beneficiaries up to date can reduce headaches and protect assets.

Caution: Some retirement accounts have special spousal rules.

In many situations, you can change beneficiaries at any time. But for certain tax-deferred workplace plans, some workplace plans can require spousal consent to name someone other than your spouse.

If you are navigating marriage, divorce, or remarriage, this is one reason you want coordination, not guesswork.

If you are recently divorced, widowed, or remarried, add these checks

After divorce

Confirm beneficiaries on every retirement account and life policy.
Confirm whether any court order affects beneficiary changes.
Review guardianship language if you have minor children.
Revisit who has the authority to act for you if you become incapacitated.

After widowhood

Review which accounts transferred, and whether you set new beneficiaries.
Rebuild contingent beneficiaries. Many people forget this step.
Confirm how accounts are titled after transfers.
Review whether the plan still matches your new priorities.

After remarriage

This is where mismatches are common, even in good families.
Clarify what you desire for a new spouse, for children, and for both.
Coordinate carefully with your attorney to avoid accidental disinheritance or unintended imbalance.

“But what about taxes?” Where I Can Add Value as a CPA

I can add real value in this area without stepping into legal drafting.

Beneficiary choices can affect:

How inherited retirement accounts get distributed over time.
Whether heirs face a compressed time period for withdrawals.
Whether trust beneficiaries create extra complexity.
How gifts and inheritances get documented for future tax basis and reporting.

The IRS also emphasizes that beneficiaries and inherited retirement accounts are subject to required minimum distribution rules and that you designate beneficiaries in accordance with plan procedures.

Important boundary. My work is tax planning and coordination. I do not prepare tax returns. If you work with a tax preparer, we coordinate with them. If you need one, I can help you find the right professional fit.

How this fits with your estate planning attorney

If you already have a trusted estate planning attorney, great. My goal is to make their work more effective by helping you confirm that financial execution aligns with legal intent.

The attorney drafts and updates documents.
We review the account-level implementation and beneficiary designations.
We coordinate tax-planning implications and ensure the plan remains current through life transitions.

We will not replace your attorney. We want to help ensure your plan works in the real world.

Sources and further reading

IRS: Required minimum distributions for IRA beneficiaries
S. Department of Labor: Current Challenges and Best Practices Concerning Beneficiary Designations in Retirement and Life Insurance Plans (PDF)
S. Supreme Court: Kennedy v. Plan Administrator for DuPont Savings and Investment Plan (2009)

Ready to confirm what is on file?

Download the Checklist

Prefer not to download anything? Email philweiss@apprisewealth.com with the subject line “CHECKLIST,” and we will send you a copy.

If you discover an outdated item, you can usually fix it quickly. If you discover complexity, that is a good reason to coordinate with your estate planning attorney and your financial planner.

Download: Beneficiary Designation Checklist

If you would like help

If the checklist reveals outdated beneficiaries, multiple old plans, a trust question, or a blended-family situation, that’s a good time to talk. You can schedule a Beneficiary Review Call.

If you would rather start by getting my weekly guidance, you can subscribe to the newsletter.

FAQs

1) Does a will override a beneficiary designation?

Often, no. Many assets are transferred by beneficiary form or TOD/POD instructions, not by your will. Your will usually governs what passes through probate after those transfers occur.

2) How often should I review my beneficiaries?

At least annually, and immediately after major life changes like divorce, remarriage, or a death in the family.

3) Should I name contingent beneficiaries?

Usually, yes. Contingents are your backup plan if the primary beneficiary dies or disclaims their rights to the assets for any reason.

4) Do I need my spouse’s permission to change a beneficiary?

Sometimes. Certain workplace retirement plans can require spousal consent to name a non-spouse beneficiary.

5) Should I name a trust as a beneficiary?

Sometimes. This issue is highly fact-specific and attorney-led because it intersects with control, minors, creditor protection, and tax considerations. Coordinate the legal and financial implementation.

Our practice continues to grow through introductions from our clients and friends. Thank you for your trust.

If you would like to discuss financial topics, including navigating new beginnings, managing your investments, creating a life plan, or saving for retirement, please schedule a call or a Zoom virtual meeting. We will be in touch.

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