You may assume that once you establish a valid and enforceable Last Will and Testament document, it has full-fledged control over everything you own. Specifically, your named beneficiaries will rightfully receive all the property you intended for them. However, certain accounts and assets carry their own beneficiary designations, which may not and cannot be governed by your will. So, if you have conflicting instructions in these accounts versus in your will, please continue reading to learn which beneficiary designations might have the power to override your will and how an experienced Butler County will preparation attorney at Heritage Elder Law & Estate Planning, LLC can help you strategize accordingly based on this.
Which assets typically override a will because of beneficiary designations?
First of all, you must understand that a beneficiary designation is its own kind of legal document, which names the individual set to receive the asset in question at the time of your passing. This is to say that these designations are managed by the entity that holds the asset in question, and therefore, this takes precedence over a Last Will and Testament document that merely mentions the asset. With that being said, below are examples of assets that typically override a will due to a beneficiary designation contract:
- Your life insurance policy.
- Your retirement accounts (i.e., IRAs and 401(k)s).
- Your payable on death and transfer on death accounts.
- Your annuities.
How will beneficiary-designated assets pass outside of my will?
Put in another way, your Last Will and Testament document only controls the property and assets that must pass through the Pennsylvania probate process upon your death. This is all while your accounts with beneficiary designations cannot be ruled by the Pennsylvania probate court, thus skipping this legal step entirely. This means that your beneficiary-designated assets may pass directly to the named individuals in your beneficiary designation contracts in accordance with the controlling financial institution’s procedures.
In the end, understanding how the terms work for your will and beneficiary designations documents may help you avoid committing accidental disinheritances. For example, you may have written that your child will receive the funds from your life insurance policy, a fair comparison to the assets you coordinated for their siblings to inherit. However, you may check your policy and notice your spouse’s name listed. Now, you may know how to pivot and either modify the beneficiary designation on your policy or divide your other assets in your will more evenly.
If this is what you are currently up against, do not try to put up a fight without the legal assistance of one of the skilled Butler County estate planning attorneys from Heritage Elder Law & Estate Planning, LLC. We urge you to retain our services as soon as possible.
