The names on your accounts may matter more than your will
How beneficiary names work.
When you opened a retirement account, you named a beneficiary. You did the same for life insurance. That is the person who gets the money when you pass.
That name wins over your will. If your will says your children, but the account names your ex-spouse, the ex-spouse gets it.
The accounts to check.
- Workplace retirement plans, like a 401(k).
- Your own retirement accounts, like an IRA or an RRSP.
- Your life insurance policies.
- Any annuities.
- Bank or investment accounts that name someone to receive them when you pass.
The most common mistake.
You set up the account years ago and named your spouse. Then you divorced and remarried.
You updated your will, but never changed the name on the old account. It happens often, and it can leave out the people you meant to protect.
How to check in an afternoon.
Call each account provider. Ask who is listed first and who is the backup. Write it down. Compare it to your will and your wishes.
If anything does not match, update it with the provider.
You can also upload your papers to Succession Plan. We use AI to read documents you upload. You check and accept every fact before it enters your plan.