Estate & Legacy Planning
My trust says one thing, but I think my IRA beneficiaries say something different—how do I know if they match?
This is one of the most common—and costly—mistakes we see. Your estate plan may be beautifully drafted, but if your beneficiary designations don't align with it, the legal documents may be irrelevant.
Beneficiaries Trump Everything
IRAs, 401(k)s, life insurance, and annuities pass by beneficiary designation, not by your will or trust. If your IRA says your ex-spouse is the beneficiary, that's who gets it—regardless of what your current will says.
Common Disconnects
Outdated beneficiaries: Designations made years ago that no longer reflect your wishes.
Trust vs. individual: Your trust may have specific provisions for how assets should be managed, but if the IRA goes directly to your children, those provisions don't apply.
SECURE Act changes: Recent law changes affect how inherited IRAs are taxed, potentially making trust beneficiaries more or less advantageous.
Missing contingent beneficiaries: If your primary beneficiary predeceases you, where do the assets go?
Our Review Process
We conduct a comprehensive beneficiary review as part of our planning process, and we revisit it annually. We coordinate with your estate attorney to ensure your designations support your overall plan, not undermine it.
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These scenarios represent common situations we help families navigate. Each client's circumstances are unique, and outcomes vary. This content is for educational purposes only and does not constitute financial advice.
