The Estate Planning Mistake That Bypasses Your Will Entirely
You could have the most carefully drafted will in Georgia, and it still won’t control some of your most valuable assets. That’s not a flaw in your plan. It’s how certain accounts are designed to work.
What Beneficiary Designations Override
Retirement accounts, life insurance policies, and accounts with payable-on-death or transfer-on-death designations all pass directly to whoever is named on the beneficiary form. They bypass your will entirely.
How This Goes Wrong
A common but unfortunate scenario is when someone passes away with a significant IRA still listing a first spouse as beneficiary, despite being remarried for over a decade. The will left everything to the current wife and children. But the IRA form controlled, and there was nothing the family could do.
Other common problems are a deceased parent still listed as beneficiary, “my estate” listed as beneficiary (which routes funds through probate), or a form that was never filled out. Georgia’s revocation-by-divorce statute covers wills and trusts, but federal ERISA governs most retirement accounts and doesn’t care about your divorce decree.
The 15-Minute Fix
Log into each account and verify your beneficiaries are current. Check both primary and contingent beneficiaries. If you’re not sure how your designations coordinate with your will or trust, that’s a conversation worth having with an estate planning attorney. A plan is only as strong as its weakest link.
How Edwards Law Can Help
At Edwards Law, we review beneficiary designations as part of every estate plan. If it’s been a while since you’ve checked yours, we can help.
Ready to get started? Contact us today to schedule a consultation.
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