Do beneficiary designations override a will?

Yes. Beneficiary designations on retirement accounts, life insurance, annuities, and accounts with TOD or POD designations always override what your will says. Assets with named beneficiaries pass directly to those beneficiaries without going through probate or the will.

What is the difference between a primary and contingent beneficiary?

A primary beneficiary is first in line to receive the account when you die. A contingent beneficiary (also called a secondary beneficiary) receives the account only if the primary beneficiary has already died or otherwise cannot receive the funds. Both should be named on every account.

Beneficiary Designations Explained

How they override your will · Primary vs. contingent · Per-stirpes vs. per-capita · Accounts that need them · Common mistakes

Beneficiary designations are the most powerful — and most commonly neglected — tool in estate planning. They determine who receives your retirement accounts, life insurance, and bank accounts when you die, and they do it quickly, privately, and without probate. They also completely override your will. A wrong or missing beneficiary designation can derail an otherwise well-planned estate.

Educational content only. Beneficiary designation rules vary by account type, institution, and state law. Consult a qualified estate planning attorney or financial advisor to ensure your designations work as intended.

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How they work Primary vs. contingent Per-stirpes vs. per-capita Which accounts need them Common mistakes When to review

How it worksHow Beneficiary Designations Work

When you open a retirement account, life insurance policy, or certain bank accounts, you fill out a form naming who receives the account when you die. That designation is a legal contract between you and the account custodian — and it is completely independent of your will.

When you die, your named beneficiary contacts the institution, provides a death certificate and their identification, and receives the account directly — no probate, no will, no court involvement. The money transfers in days to weeks, not months or years.

Your will cannot override a beneficiary designation. If your IRA names your ex-spouse as beneficiary but your will says “everything to my current spouse,” your ex-spouse gets the IRA. Courts have consistently upheld beneficiary designations over contrary will provisions.

TypesPrimary vs. Contingent Beneficiaries

Every account should name both a primary and one or more contingent beneficiaries:

Primary beneficiary: First in line. Receives the account if they are alive at your death.
Contingent beneficiary (secondary beneficiary): Receives the account only if the primary beneficiary has died before you or cannot accept the funds.

You can name multiple primary and/or contingent beneficiaries. You specify the percentage each receives (must total 100%).

Scenario	What happens
Primary beneficiary alive at your death	Primary receives 100% (or their stated %)
Primary predeceased you, contingent alive	Contingent receives (per-stirpes or per-capita — see below)
Both primary and contingent have died	Account goes to your estate → probate
No beneficiary named at all	Account goes to your estate → probate

Always name a contingent beneficiary. If your primary predeceases you and you have no contingent, the account goes through probate — with potential tax consequences for IRA accounts specifically.

ElectionPer-Stirpes vs. Per-Capita

When you name multiple beneficiaries, you often choose how the account is distributed if one of them dies before you.

	Per-Stirpes	Per-Capita
Meaning	“By branch” — deceased beneficiary's share passes to their descendants	“By head” — deceased beneficiary's share is split among surviving beneficiaries
If one of three children dies before you	That child's 1/3 share passes to their children (your grandchildren)	The 1/3 is split between the two surviving children (each gets 1/2)
Best for	Keeping assets within family branches	Simpler distribution among survivors

Per-stirpes is generally recommended for most families — it ensures assets stay within your family tree even if a child predeceases you. Many forms offer “per stirpes” as an election; if not specified, the default is often per-capita.

AccountsWhich Accounts Need Beneficiary Designations

Account Type	Designation Type	Passes Without Probate
Traditional IRA	Beneficiary designation	Yes
Roth IRA	Beneficiary designation	Yes
401(k) / 403(b)	Beneficiary designation (spouse must consent to name non-spouse)	Yes
Life insurance	Beneficiary designation	Yes
Annuity	Beneficiary designation	Yes
Bank accounts	POD (Payable on Death)	Yes
Brokerage accounts	TOD (Transfer on Death)	Yes
HSA	Beneficiary designation	Yes (with tax implications for non-spouse)

AvoidCommon Beneficiary Designation Mistakes

Failing to update after divorce. Divorce does not automatically revoke a beneficiary designation in most states. Your ex could receive your IRA if you don't update it.
Naming a minor child directly. A minor cannot legally receive an inheritance. A court-appointed guardian will control the funds until the child reaches majority. Use a custodial account (UGMA/UTMA) or trust instead.
Naming your estate as beneficiary. An IRA payable to your estate loses the option to stretch distributions and forces unfavorable tax treatment for heirs. This is almost always a mistake for IRAs.
Forgetting contingent beneficiaries. If your primary predeceases you with no contingent named, the account goes through probate.
Not confirming the designation is on file. Institutions have lost paperwork. Request written confirmation that your beneficiary designation is recorded correctly.
Not coordinating with your overall estate plan. Beneficiary designations must align with your will and trust. An estate planning attorney can review the complete picture.

MaintainWhen to Review Your Beneficiary Designations

Review all beneficiary designations after any of these life events:

Marriage or divorce
Birth or adoption of a child or grandchild
Death of a named beneficiary
Significant change in your relationship with a named beneficiary
A named minor beneficiary reaches adulthood
Changes in tax law or state law affecting estates
Rolling over or opening new accounts

As a general rule, review all beneficiary designations at least every 3–5 years — or whenever you review your will and other estate documents. For a structured approach, use our Beneficiary Planning Checklist.

Log in to every financial institution and confirm your beneficiary designations once a year. This takes about 30 minutes and can prevent years of legal and tax headaches for your heirs.

Related guides & tools

Estate & Legacy Planning Hub Beneficiary Planning Checklist Inherited IRA Rules Last Will & Testament Probate Explained Estate Planning Basics Retirement Document Checklist