DayCents

Beneficiary

A beneficiary is the person or entity you name to receive an account or policy when you die — on retirement accounts, life insurance, and bank accounts. A named beneficiary passes directly to that person, bypassing probate and even overriding your will.

Because beneficiary designations override a will, keeping them current after a marriage, divorce, or death is essential — an ex-spouse left on an old 401(k) will inherit it. Review them periodically and name contingent (backup) beneficiaries too.