The beneficiary audit

This is a general checklist, not advice about your situation. Rules vary by state, and federal rules can apply to workplace plans. Back to Episode 01: Beneficiary Beats Will.

1. Step 1. List every account that could pay someone when you die: retirement plans, life insurance, brokerage and bank accounts, and anything owned jointly. Use the table below.
2. Step 2. Ask each institution, in writing, who's on file right now. Write the answer and the date in the table.Why: in Kennedy, DuPont “relied on William's designation form and paid the balance of some $400,000 to Liv,” even though the divorce decree divested her of the plan benefits. ^[F9] FINRA: “You can change beneficiaries or cancel your TOD throughout the life of your account… Once you die, your designated beneficiaries cannot be changed.” ^[F3]
3. Step 3. Check that each account has a backup beneficiary (sometimes called a contingent beneficiary), for when the first choice drops out.Example: in Sveen, the policy named his then-wife as primary and “his two children from a prior marriage … as contingent beneficiaries.” When Minnesota's law revoked the ex-wife's designation, the backups were next in line. ^[F13]
4. Step 4. Redo this after any marriage, divorce, birth or death in the family.The US Department of Labor: “If you were single when you enrolled in the plan and subsequently married, it is important that you notify your employer and/or plan administrator and change your status under the plan.” ^[F26]
5. If your will and your forms disagree, that's a good reason to talk to an estate-planning attorney in your state.

Your accounts

Account ideas from Step 1: retirement plans, life insurance, brokerage accounts, bank accounts, anything owned jointly.

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The Legacy Desk · Episode 01 companion checklist · General education, not legal advice. Talk to a licensed attorney in your state.