When Was the Last Time You Checked Who You Listed As Beneficiaries? Fall is just around the corner. We are putting away summer furniture and getting ready for the change of seasons. How about getting ready for the change of season in our lives? We are busy, and when it comes to estate planning, many people think having a will or trust is enough. But there is another important and often overlooked issue of who you have listed as your beneficiaries on financial accounts, insurance policies, pensions, and other retirement accounts. Making sure your designated beneficiaries are up to date is critical as people move, pass away, or relationships change. Why Do Beneficiary Designations Matter? Many people do not realize that beneficiary designations override your will. That means no matter what your will says, the person listed as the beneficiary on your insurance policies, pension and retirement accounts, IRA, or annuities will receive the funds directly. Meaning that they will not be part of your estate and affected by your will. Your listed beneficiary designations are legally binding and will take precedence over any other estate or trust documents. Failure to keep your listed beneficiaries up to date can lead to unintended consequences, such as your ex-spouse being listed as the beneficiary on a life insurance. Notwithstanding what your will states, your ex-spouse may receive the proceeds regardless of your will or other estate documents. When Should You Update Them? A good rule of thumb is to review your beneficiary designations any time there’s a major life event, such as:  Marriage or divorce  The birth or adoption of a child or grandchild  Death of a previously named beneficiary  Changes in your financial goals or family dynamics  Changes in your relationships (friendships, etc.) However, even if you have no major life events, it is still a good idea to do an annual or at least regular check-in to confirm that everything on your accounts is current and accurate. What Accounts Should You Look At? Accounts that require a designated beneficiary usually include:  Certificates of Deposit  Retirement Accounts (401(k), pensions, IRA, etc.)  Life Insurance Policies  Annuities  Transfer On Death (TOD) Financial Accounts  Payable On Death (POD) Bank Accounts (Savings, Checking, Money Markets, etc.) Updating your accounts is usually a fairly easy process. You will need to contact each of your financial institutions or plan providers, as they will have their own process for making changes and updating beneficiaries. Conclusion Making sure that your accounts are updated is an easy but important task. And it is one that does not take long and will ensure that your assets get to the people you want them to go to.