When was the last time you checked the beneficiary listed on your retirement accounts?
It might not be top of mind, but this small detail can have major consequences for your loved ones—and your legacy. Whether it’s a 401(k), 403(b), IRA, or similar plan, the person listed as the beneficiary on file with the account administrator—not your will or trust—gets the money.
That’s right. Even if your estate plan says otherwise, the beneficiary form governs who inherits the funds.
So why does this matter?
Because many people set their beneficiaries when they first open an account… and never revisit them. If you’ve experienced a life change—like marriage, divorce, or welcoming children or grandchildren—it’s time to review your designations.
Common scenario: A divorced individual forgets to remove their ex-spouse as the beneficiary. Years later, upon their passing, the ex legally inherits the account, even if that wasn’t the intent.
Don’t let an outdated form undo your wishes.
What to do next:
- Contact your retirement account custodians
- Request a current copy of your beneficiary form
- Update as needed to reflect your true intentions
It’s a simple check that can prevent years of frustration, legal complications, and unintended outcomes.
If you’re unsure where to begin, let’s talk. I can help you review and align your financial plan with your goals—and your values.
Kathy Williams, RFC®
Advance Financial Lighthouse, Inc.