Beneficiary Designations and What They Override

A new parent updates the will, names a guardian, and assumes the estate plan is current. But the documents that control where most financial assets actually go are not the will. They are the beneficiary designation forms filed separately with each retirement plan, insurance policy, and bank account. These forms operate as standalone contracts. They pay directly to whoever is named, regardless of what the will says. For expecting parents, a single review of these forms (and a clear understanding of the rules that govern them) prevents the most common disconnect in estate planning: a will that says one thing and accounts that do another.