Make It a New Year’s Habit: Reviewing Your Beneficiaries

Why January Is the Right Time to Check In on This Often-Overlooked Step

You’ve created a will. You’ve set up a trust. But here’s something many people miss: beneficiary designations on your financial accounts override your will or trust.

That means if you’ve named an ex-spouse or outdated contact on your life insurance or retirement plan—even years ago—that’s who may receive the money, regardless of what your estate plan says.

Every January, we encourage clients to set aside just 30 minutes for this critical but simple review. It’s a quick way to catch errors, reflect any significant life changes, and keep your plan aligned with your current wishes.

Your January Beneficiary Review Checklist

1. Gather the Right Documents
   Start by locating recent statements or logging into your online accounts for:
   
   • Retirement plans (401(k), 403(b), IRAs, etc.).
   • Life insurance policies.
   • Bank accounts with payable-on-death (POD) designations.
   • Investment accounts with transfer-on-death (TOD) designations.
     
2. Check Your Beneficiaries
   For each account, confirm:
   
   • The primary beneficiary is current and correct.
   • A contingent beneficiary (your backup) is listed.
   • The percentages and contact info are accurate.
     
3. Think Through Recent Changes
   Have you experienced any of these in the past year?
   
   • Marriage or divorce.
   • Birth of a child or grandchild.
   • Death of a previously named beneficiary.
   • A falling out or a change in the relationship.

These events may mean it’s time to update who receives what.

4. Update Where Needed
Don’t assume your will takes care of everything. If a name is outdated or missing, update the designation directly through the financial institution—not your estate documents.

5. Document and Share Changes
Once your updates are made:

• Save confirmation documents.
• Share updates with your estate planning attorney.
• Keep a copy with your estate plan binder or digital vault.

Why It Matters

Beneficiary designations often go untouched for years—yet they’re among the most powerful documents in your entire estate plan. A small oversight can cause a big mess, especially if loved ones are left out or the wrong person is named by default.

The good news? A short annual review can make all the difference. It’s one of the most effective ways to protect your legacy—and it starts with a simple login.

Need Help Aligning Your Beneficiaries with Your Estate Plan?

We’re here to guide you through every detail and ensure your plan reflects your wishes—now and in the years to come.