November 10, 2025

Coordinating Beneficiary Designations and Your Will

A carefully drafted will is only one part of a complete estate plan. Many valuable assets—such as retirement accounts, life insurance policies, and payable-on-death bank or investment accounts—are controlled not by your will, but by beneficiary designations on file with your financial institutions.

If these designations are outdated or inconsistent with your estate planning documents, your assets may not go to the people you intend. 

How Beneficiary Designations Override a Will

When you designate a beneficiary on an account, those assets transfer automatically upon death, bypassing probate entirely. The instructions on the beneficiary form are legally binding and take precedence over your will.

For example, if your will leaves everything to your spouse but your 401(k) still lists a former spouse or child as the beneficiary, the plan administrator must follow the beneficiary designation, not the terms of your will. These conflicts are common and can cause significant legal and financial complications for families.

Key Steps to Keep Beneficiary Designations Aligned

1. Review Regularly: Update your designations after major life events such as marriage, divorce, birth, or death in the family.
2. Coordinate With Trusts: If your will creates a trust for minor children or beneficiaries with special needs, name the trust as the account beneficiary instead of the individual.
3. Plan for Tax Efficiency: Retirement accounts and annuities have unique tax rules. Improperly naming an estate or certain trusts can trigger unnecessary income tax.
4. Work With Your Advisors: The best results come when your estate planning attorney and financial advisor collaborate to ensure every asset aligns with your overall plan.

Why Proper Coordination Matters

Failing to coordinate beneficiary designations can:

• Override your will and alter who inherits major assets.
• Increase income or estate taxes for your heirs.
• Delay distributions or create avoidable disputes.
• Undermine trusts or protections you’ve built into your plan.

By keeping your beneficiary designations up to date and consistent with your will, you preserve both your intent and your family’s financial security.

Work With Experienced Estate Planning Attorneys

At Gilpin Givhan, PC, our estate planning attorneys help individuals and families design comprehensive estate plans that integrate wills, trusts, and beneficiary designations. We provide practical guidance to ensure your estate transfers efficiently, privately, and in accordance with your wishes. To learn more or to discuss your estate plan, contact Gilpin Givhan.