Beneficiary Designations Review and Updates in Texas
Many Texas families assume their will controls everything. But for many assets, that is not true.
Assets such as:
Retirement accounts
Life insurance
Payable-on-death accounts
Transfer-on-death accounts often transfer by beneficiary designation — meaning the beneficiary form controls distribution.
That’s why reviewing beneficiary designations is one of the most important — and most overlooked — parts of estate planning.
What Are Beneficiary Designations?
Beneficiary designations are instructions you file with an institution stating:
Who receives the asset
How it transfers upon death.
Beneficiary designations apply to many accounts, including:
401(k)s and IRAs
Life insurance
Annuities
Certain bank accounts
Why Beneficiary Reviews Matter
Beneficiary designations matter because they:
✅ override a will
✅ control who receives major assets
✅ create enforceable transfer instructions
✅ can cause unintended inheritance outcomes if outdated
Common problems include:
An ex-spouse still listed
A deceased beneficiary listed
Minor children listed directly
Outdated family structure
Designations that conflict with trust plans
When to Review Beneficiaries
Texas families should review beneficiaries:
Annually
After major life changes such as:
marriage or divorce
birth of a child
death in the family
major financial changes
changes in relationships
trust creation or updates
Common Beneficiary Mistakes to Avoid
Families often unintentionally create problems by:
❌ naming minor children directly
❌ naming beneficiaries without coordinating a trust plan
❌ failing to update after divorce
❌ forgetting about older policies
❌ assuming “my spouse will figure it out”
Beneficiary updates can prevent major future disputes.
Beneficiary Coordination Is Part of a Complete Estate Plan
Estate planning is more than documents.
It is coordination — and beneficiary review is one of the most important coordination steps.
Considering trust planning for your Texas estate plan?
Trust planning can create stronger protection, reduce probate burdens, and help families plan intentionally for long-term stability — but it must be designed and funded properly.
Helpful resources:
If you’re considering a trust, schedule a consultation to determine whether trust planning fits your goals and how to structure it correctly.
