When most people think about estate planning, they picture wills, trusts, and powers of attorney. But one of the most important (and often overlooked) aspects of your plan is your beneficiary designations.
Unlike wills, these designations typically supersede what’s in your estate planning documents. That’s why revisiting them regularly isn’t just a best practice—it’s essential.
What Estate Planning Documents Do I Need?
A strong estate plan includes more than just a will. At a minimum, many individuals benefit from:
- A Last Will and Testament
- A Durable Power of Attorney for finances
- A Health Care Power of Attorney or Advance Directive
- A Revocable Living Trust, especially for those with complex needs
- Beneficiary designations on retirement accounts, life insurance policies, and certain brokerage accounts
- Note: these may vary by state
But having these documents isn’t enough; they must stay current. Life changes, and your estate plan should reflect that.
What Should Prompt a Review of my Beneficiaries?
You should revisit your beneficiary designations if any of the following apply:
- You’ve recently married or divorced
- You’ve had children or grandchildren
- A listed beneficiary has passed away
- Your relationships have shifted
- You’ve changed jobs and rolled over retirement plans
- You’ve experienced a major life or financial event
Outdated beneficiaries can lead to unintended consequences, such as leaving large sums to an ex-spouse or accidentally disinheriting a child. And because these designations override other documents, failing to update them can undo your planning efforts entirely.
Why Legacy Planning Requires Ongoing Attention
We believe that estate planning is not a one-time task, but an ongoing process. Your goals, values, and relationships evolve, and your estate documents should evolve with them.
Reviewing your beneficiary designations every few years – or after any major life change – ensures your plan remains aligned with your intentions.
How Foster & Motley Can Help
At Foster & Motley, we coordinate with estate attorneys to ensure all aspects of your plan – including your beneficiary designations – are part of a clear, thoughtful strategy. We’ll help you determine what estate planning documents you need, review them alongside your financial plan, and offer personalized guidance as life unfolds.
Your legacy deserves clarity. Let’s work together to make sure your intentions are protected – now and into the future.
Schedule a discovery call to learn how we help clients protect what matters most with proactive, personalized estate planning.