When most people think about estate planning, they picture writing a will. But did you know that some of your most valuable assets—like life insurance, retirement accounts, and certain bank accounts—aren’t even controlled by your will?
Instead, these assets are passed along based on beneficiary designations—forms you fill out with banks, insurance companies, and retirement plan providers. This means that even the best-written will won’t matter if it says something different than your beneficiary form.
As experienced will lawyers in Tyler, TX, we often help clients avoid these common and costly estate planning mistakes.
A beneficiary designation tells a financial institution who should receive a specific asset when you pass away. You’ll typically see these used with:
These accounts skip the probate process entirely. The financial company simply sends the money to whoever is listed—no need to check the will, no court approval needed. That’s why it’s so important to review and update your beneficiary forms regularly.
Here’s a common mistake: someone updates their will to leave everything to their children but forgets to update the beneficiary form on their retirement account, which still lists an ex-spouse. Even though the will is newer, the financial institution is required to follow the beneficiary form—not the will.
When there’s a mismatch between the will and a beneficiary designation, the beneficiary form wins every time. This can lead to serious confusion and conflict for families. Many people assume the will is the final word—but the law says otherwise. Read more on the importance of naming beneficiaries in wills in our article, Why Naming a Beneficiary Matters for Your Will and Trust
Not all property passes through beneficiary designations. Your will still controls things like:
For these assets, the probate court will follow the instructions in your will. This is where working with skilled will lawyers in Tyler, TX makes a real difference. We can help ensure your wishes are clear and legally binding.
A strong estate plan isn’t just about having a will—it’s about making sure everything works together. That includes:
If your goal is to leave a life insurance policy to your trust, but the policy lists a different person as beneficiary, your wishes won’t be honored. Coordinating every part of your estate plan is key to avoiding legal disputes, taxes, and delays.
Life changes—marriage, divorce, births, deaths, and financial shifts. Each time something big happens, it’s smart to review your will and your beneficiary forms. Small updates now can prevent major headaches later.
If you're unsure whether your beneficiary designations match your will—or you're just starting your estate planning journey—our will lawyers in Tyler, TX are here to help. Book a consultation today to ensure your estate plan reflects your true wishes. Our team provides a personalized review of your will and beneficiary forms while guiding you about the best types of estate planning tools to use for your situation, how to protect your family and assets, and coordinating wills, trusts, and account designations.
