Beneficiary Planning
Make sure the people named on your accounts still reflect your wishes.
A will is an important part of planning, but it does not necessarily control everything you own.
Many financial accounts and benefits allow you to name a beneficiary directly. When that happens, the beneficiary designation on the account may determine who receives the asset.
How Is a Beneficiary Different From Your Will?
Your will provides instructions for how certain property should be handled after your death. A beneficiary designation works differently.
With many retirement accounts, life insurance policies, annuities, and other financial accounts, you can name the person or people who should receive the account directly. Those instructions are maintained by the company or organization that holds the account.
Because of this, simply updating your will may not update the beneficiaries on these accounts.
Your beneficiary designations and your will should work together as parts of your overall plan.
Start by Thinking About the People
Before looking at individual accounts, think about the people you want to provide for.
This may include your spouse, children, grandchildren, other family members, or someone who depends on you financially.
It is also worth considering whether your circumstances have changed since you last named beneficiaries. A marriage, divorce, birth, death, retirement, or other major life change can be a good reason to review your choices.
Which Accounts Should You Review?
Beneficiary designations are commonly found on:
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Life insurance policies
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401(k), 403(b), and other employer retirement plans
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Pensions
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Traditional and Roth IRAs
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Annuities
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Bank accounts with Payable on Death (POD) designations
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Brokerage or investment accounts with Transfer on Death (TOD) designations
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Health Savings Accounts
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Certain employer-provided benefits
Not every account works the same way. If you are unsure whether an account has a beneficiary designation, contact the institution or employer that holds it.
Use the Beneficiary Planning Worksheet
The Beneficiary Planning Worksheet gives you one place to work through the process.
Use it to:
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Identify the people you want to consider.
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Make a list of accounts that may have beneficiaries.
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Record who is currently named.
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Check whether you have a backup or contingent beneficiary.
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Identify accounts that need review or changes.
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Make a simple follow-up list so you know what to do next.
You do not need to put account numbers or other sensitive financial information on the worksheet.
Remember: The Worksheet Does Not Make the Change
Writing a person's name on the worksheet does not change the official beneficiary on an account.
If you decide that a beneficiary needs to be added or changed, contact the employer, insurance company, financial institution, or other organization that holds the account and follow its process for updating your beneficiary designation.
After making a change, keep a copy or confirmation with your important records.
Review Your Beneficiaries From Time to Time
Beneficiary planning is not necessarily something you do once and never revisit.
Consider reviewing your beneficiary designations after major life changes, including marriage, divorce, the birth or adoption of a child, the death of someone you have named, retirement, or significant changes in your financial accounts.
A short review can help make sure that the instructions you put in place years ago still match what you want today.
Ready to Begin?
Gather a list of your major financial accounts and benefits, then use the worksheet to work through them one at a time.