Beneficiaries Matter: Why You Should Review Them Regularly

September 18, 2025

When people think about financial or estate planning, the conversation often centers around wills, trusts, and investment accounts. But one detail that can carry just as much weight is your beneficiary designations. Naming beneficiaries ensures your assets go exactly where you intend—quickly and without unnecessary complications. Yet, many people overlook the importance of keeping these designations up to date.

Why Beneficiaries Are So Important

Beneficiaries are the individuals or organizations you choose to receive certain assets after your passing. These designations typically apply to accounts such as:

●     Retirement accounts (IRAs, 401(k)s, etc.)

●     Life insurance policies

●     Annuities

●     Transfer-on-death (TOD) or payable-on-death (POD) accounts

Unlike the instructions in your will, beneficiary designations bypass probate and transfer directly to the person or entity you’ve listed. This means the process is often faster, more private, and less costly for your loved ones.

But there’s another reason designations are so critical: they override your will. If your will says one thing and your account’s beneficiary designation says another, the designation on the account wins every time. That’s why accuracy and regular review are so important.

Common Mistakes People Make

●     Forgetting to name a beneficiary: If no one is listed, the account may default to your estate, triggering probate and delays.

●     Outdated designations: Naming an ex-spouse, a deceased relative, or someone who no longer fits your wishes is more common than you might think.

●     Unequal or unintended outcomes: Without careful planning, you may unintentionally create conflict among heirs or tax burdens that could have been avoided.

How Often Should You Review Them?

As a rule of thumb, you should review your beneficiaries at least once a year. However, life changes often trigger the need for an update. Key events include:

●     Marriage or divorce

●     Birth or adoption of a child or grandchild

●     Death of a previously named beneficiary

●     Major changes in financial situation or estate plans

●     Shifts in relationships or charitable interests

Think of it like an annual “financial check-up.” Just as you’d review your investment performance or insurance coverage, confirming your beneficiary designations should be part of the process.

The Bottom Line

Beneficiaries may seem like a small detail, but they carry enormous weight in ensuring your assets are passed along according to your wishes. Regularly reviewing and updating them helps protect your loved ones, avoid unnecessary delays, and give you peace of mind knowing your plans are clear and current.

Sources:

https://www.aafmaa.com/learning-hub/blog/post/9496/the-importance-of-designating-a-beneficiary

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your