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Although you may have a detailed will, it doesn’t control all your assets when you pass away. Beneficiary designations on accounts such as life insurance policies or 401(k)s override your will.
If you’re not careful when filling out your retirement account beneficiary form, you accidentally could cut someone out of their inheritance or start conflicts that can go on for years. It’s essential to be aware of the potential pitfalls of naming beneficiaries to ensure your wishes are followed.
Not Designating a Beneficiary
If you don’t keep your beneficiary designation up to date or fail to name one, the benefits may go to the last beneficiary. This may be an ex-spouse or a previously deceased individual.
