| 1 - Your will has no jurisdiction. |
Accounts with beneficiary designations, such as bank accounts, IRAs, 401(k)s, insurance policies and annuities are not typically governed by your will.
Review these accounts periodically, especially after major life events such as a marriage, birth of a child, death of spouse, or a divorce. |
| 2 - You can name a secondary (contingent) beneficiary. |
In addition to your primary beneficiary, you may list a contingent (secondary) beneficiary. Doing so ensures if your primary beneficiary dies before you, the contingent beneficiary status is automatically activated. |
| 3 - Retirement accounts may have inheritance rules. |
With IRAs and 401(k)s there may be advantages to naming a spouse over another party or your estate as beneficiary. Spouses are typically entitled to more distribution options than a non-spousal beneficiary. |
| 4 - Naming a minor as a beneficiary may present problems. |
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 In most states, the courts must supervise the distribution of money left to children under the age of 18, which could result in a slow and costly process. Leaving money to minors through other avenues, such as a trust may be more prudent. |
| 5 - Changing beneficiaries is easier than you may think. |
Most financial institutions make the beneficiary change process relatively simple. Typically to name a new beneficiary, all you will need is a person's full name, date of birth, and in some cases a Social Security number. |
If your beneficiary information is out of date on your financial records, you may have problems?