Your Will Might Not Decide Who Gets Your Assets

You may be thinking to yourself, “Well, Mason, that’s literally what a will’s entire purpose is.” And you’d be right.

You name little Timmy to receive your house upon your death, and assuming everything is set up properly, that wish is fulfilled.  Sarah, also according to your will, is supposed to receive your IRA in its entirety.

There’s just one glaring issue...

You realize in your glowing afterlife that you never updated your beneficiary elections.  Instead, Ronald…yes, Ronald, your once favorite cousin, is still the name listed as beneficiary.  So, when you die, Ronald may receive the IRA, regardless of what your precious will says. That’s because certain assets, including retirement accounts and life insurance policies, generally pass according to their beneficiary elections rather than through your will.

Your will can say one thing… and your beneficiary election can say another.  When they conflict, your beneficiary election usually wins.

This is why estate planning isn’t just about having a will.

It’s also about making sure the rest of your financial life actually lines up with the plan.  And, if you’d rather not have your ex-husband, ex-wife, estranged family member, or Cousin Ronald from 20 years ago walk away with the spoils of your hard-earned labor, update your estate plan.

Marriage, divorce, births, deaths, and major changes in your financial life are all good reasons to revisit your estate plan and beneficiary elections.

Because the last thing you want is for your final financial decision to be one you made 20 years ago and forgot about.