Beneficiary Designation
The form on file with a financial institution naming who receives an account when you die. It passes outside your will — and overrides it.
This is the quiet failure point in otherwise careful plans. Retirement accounts and life insurance pass by designation, not by will, so the form on file wins even when your will says something completely different.
The usual culprit is a form filled out years ago and never revisited after a marriage, divorce, birth, or death. Reviewing these takes very little time and prevents an outcome nobody intended.
Related Terms
Beneficiary
A person or organization named to receive an asset — from a will, a trust, an insurance policy, or a retirement account.
Payable on Death (POD)
A designation on a bank account that transfers the balance directly to a named person when you die, without probate.
Will
A legal document directing who receives what you own in your own name, and naming a guardian for any minor children.
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