Many taxpayers assume writing a will determines who inherits their retirement accounts and life insurance. Account beneficiary designation forms legally override instructions written in a will.
In Kennedy v. Plan Administrator for DuPont, 555 U.S. 285, the Supreme Court ruled ERISA account administrators must pay designated account beneficiaries regardless of conflicting wills.
Outdated beneficiary forms naming ex-spouses or deceased relatives transfer assets directly upon death. Financial institutions follow account designation forms rather than probate instructions.
Reviewing account beneficiary designations annually ensures assets transfer to your intended heirs.
When did you last review the beneficiary designations on your primary accounts?
(For educational purposes only. Not legal advice.)
