Beneficiary forms: the 10-minute task most couples skip

Both of you are partly right. Wills matter, and a couple without one should probably write one. But for many accounts, the will isn't the document that decides. The beneficiary form is.

Why the form usually wins

Retirement accounts, life insurance policies and many bank and brokerage accounts let you name a beneficiary directly. When the account owner dies, the institution generally pays whoever is named on that form. A will typically governs property that passes through probate; accounts with a valid beneficiary designation usually pass outside it.

That means an old form naming a former partner, a parent or no one at all can override what the will says. The fix takes minutes per account.

The account-by-account list

Use this table as your checklist. Go through it together, but each of you updates your own accounts.

Account type	Where to check	What's special about it
401(k), 403(b) and similar workplace plans	Your plan's website or HR	Federal spousal rules may apply (see below)
IRAs	Your IRA provider's website	Spousal consent rules under ERISA generally don't apply; some states' property laws may matter
Life insurance (individual)	Insurer's website or customer service	Pays directly to the named person or entity
Group life through work	Benefits portal	Often forgotten; set separately from your retirement plan
Bank accounts	Ask about a payable-on-death (POD) designation	Not every account has one unless you add it
Brokerage accounts	Ask about a transfer-on-death (TOD) designation	Same: usually opt-in
HSA	HSA provider	A spouse beneficiary is treated differently for tax purposes than others, per IRS Publication 969

The spousal rule for workplace plans

For many workplace retirement plans covered by ERISA, federal law gives a spouse rights to the account. The Department of Labor explains that, generally, a married participant's spouse must be the beneficiary unless the spouse consents in writing to a different choice, and that consent typically must be witnessed by a notary or plan representative. Check your plan's summary plan description for its exact rules.

What this means for you two:

• If you're married and want someone other than your spouse as beneficiary of a workplace plan, your spouse will likely need to sign.
• If you're not married, there's no automatic spousal right. If you want your partner to inherit, you must name them.

Primary, contingent and percentages

Each form usually asks for:

• Primary beneficiaries: who receives the money first.
• Contingent beneficiaries: who receives it if no primary beneficiary is living.
• Percentages: how to divide it if you name more than one person.

Leaving the contingent line blank is one of the most common gaps. If your primary beneficiary dies before you or at the same time, a blank contingent can send the account to your estate, which may mean probate.

If you have children

Naming minor children directly can create complications, because institutions generally can't hand money to a minor. Many couples name each other as primary and a trust, or a custodian under their state's Uniform Transfers to Minors Act, as contingent. An estate attorney in your state can help you set that up correctly. If you're working through life insurance at the same time, see life insurance for couples.

Doing it in one evening

1. Make the list. Write down every account each of you holds. Old jobs count; a 401(k) left at a former employer still has a form.
2. Log in and look. Many providers show the current designation online.
3. Update. Enter full legal names and, where asked, dates of birth. Some forms ask for Social Security numbers; enter them only on the provider's secure site or official paper form.
4. Save the confirmation. Download or screenshot each confirmation page.
5. Tell each other. You each decide your own forms, but you should both know what's on them.

When to check again

Beneficiary forms don't update themselves. Recheck after a marriage, divorce, birth or adoption, a death in the family, or a job change that moves your retirement savings. Adding a two-minute check to your yearly money date keeps it from slipping for another decade.