This is one of the most common and costly estate planning mistakes: assuming your will controls everything, when in fact beneficiary designations on many accounts override it entirely.
Accounts that pass by designation, not by will
- Retirement accounts (401(k), IRA)
- Life insurance policies
- Payable-on-death (POD) and transfer-on-death (TOD) bank and brokerage accounts
Why this matters especially for solo agers
If these designations still list an ex-spouse, a deceased parent, or simply haven't been reviewed in years, that outdated name receives the asset — regardless of what your current will says. This is a five-minute fix with an enormous consequence if skipped.
Review every beneficiary designation you hold at least once every few years, and immediately after any major life change.