Week 49 Day 3: Beneficiary Designations: The Override Nobody Checks

Your 401(k), IRA, life insurance, and bank accounts pass to whoever is named on the beneficiary form -- regardless of what your will or trust says. If you named your ex-spouse on your 401(k) in 2005 a...

Your 401(k), IRA, life insurance, and bank accounts pass to whoever is named on the beneficiary form -- regardless of what your will or trust says. If you named your ex-spouse on your 401(k) in 2005 and never updated it, your ex gets the money when you die, even if your will says otherwise. Beneficiary designations are the most powerful and most neglected estate planning tool.