Does a Beneficiary Override a Will? What the Forms Decide

Two separate systems: the will and the forms

A will controls property that goes through probate. Many of the largest assets a retired household owns never go through probate at all. They pass by contract, to whoever is named on the account's own form.

These nonprobate transfers include beneficiary designations on retirement plans, annuities and life insurance, payable on death (POD) bank accounts, transfer on death (TOD) registration on brokerage accounts, joint ownership with right of survivorship and living trusts (Cornell Law School, Legal Information Institute: nonprobate transfer, checked October 14, 2026). Some states also allow a transfer on death deed for real estate (Cornell LII: transfer-on-death deed).

So in plain words: for these accounts, yes, the beneficiary form usually wins over the will. The will is not read to decide who gets an IRA with a valid named beneficiary.

The ex-spouse who is still on the form

Divorce does not always update a form. In Egelhoff v. Egelhoff (2001), a man died shortly after his divorce with his ex-wife still named on his employer life insurance and pension. A Washington statute said divorce revoked that designation, but the Supreme Court held the statute was preempted for plans governed by the federal Employee Retirement Income Security Act (ERISA), and the plan documents controlled (U.S. Supreme Court, Egelhoff v. Egelhoff, decided March 21, 2001).

In Kennedy v. Plan Administrator for DuPont (2009), an ex-wife had waived the benefits in the divorce decree but was still named on the plan form. The Court held the administrator properly paid her, because ERISA requires paying according to the plan documents (U.S. Supreme Court, decided January 26, 2009).

Outside ERISA plans, some states have statutes that revoke an ex-spouse designation on divorce. The Supreme Court upheld Minnesota's version for a life insurance policy in Sveen v. Melin (decided June 11, 2018). Rules differ by state and by account type, so the safe habit is simple: change every form after a divorce.

No contingent beneficiary, or the estate named

When the named person has died and no contingent is listed, the account agreement's default rule decides. If that rule, or the form, points to the estate, the money goes through probate and is distributed under the will, or under state intestacy law if there is no will (Cornell LII: intestate succession).

For an individual retirement account (IRA), an estate is not a designated beneficiary. If the owner died before the required beginning date, the account generally must be paid out within 5 years (IRS Publication 590-B, 2025, checked October 14, 2026). That can be faster than the 10 years most children would get if named directly. See inherited IRA from a parent.

Some employer plans also require a specific beneficiary, such as a spouse, unless the spouse consents to another choice (IRS, Retirement topics: Beneficiary, updated August 1, 2026).

Minor children and grandchildren

A minor generally cannot take control of an inheritance directly. Without planning, a court may need to appoint someone to manage it. Many forms allow a custodian under a state Uniform Transfers to Minors Act, which lets a custodian manage property until the child reaches an age set by state law (Cornell LII: Uniform Transfers to Minors Act). A trust is another option an estate attorney can explain.

For IRAs, the account owner's minor child is an eligible designated beneficiary until age 21, then the 10-year clock starts (Treasury and IRS, final regulations, July 19, 2024). Grandchildren do not get that treatment.

How to audit every account in one afternoon

1. List every account: IRAs, 401(k) and 403(b) plans, pensions, annuities, life insurance (including group coverage at work), bank accounts, brokerage accounts and real estate.
2. Ask each custodian or insurer for written confirmation of the primary and contingent beneficiaries on file. Do not rely on your memory or an old statement.
3. Compare each form with your will. Where they disagree, decide which one reflects what you want.
4. Check how shares pass if a child dies before you. Ask whether the form says per stirpes (to that child's children) or splits among the survivors.
5. Keep copies with your will, and repeat after any marriage, divorce, death or birth.

Where the will still matters

A will still names the executor, can name a guardian for minor children and controls everything that passes through probate, often the house and personal property. Beneficiary forms are fast and private, which is a real advantage (Cornell LII: nonprobate transfer). The problem is only when the two systems point in different directions. An estate attorney can coordinate them in one review.

A plain example with numbers

All numbers and names are hypothetical. A widowed mother, Ruth, has three children. Her will leaves everything equally to all three. Her forms tell a different story: her IRA form from years ago lists only her two older children, her late husband is still the only beneficiary on her life insurance, she added her oldest child as transfer on death owner of a brokerage account "for convenience" and her middle child is payable on death on her checking account.

The will promised each child one third, or $2,000,000 divided by 3 = about $666,667. Because the forms control most of the money, child A receives $950,000 and child C receives $350,000. The life insurance and house also go through probate, which adds time and cost. Ten minutes per form would have matched the plan to the will.

Sources

The Retirement Literacy Foundation is a 501(c)(3) public charity. This page is general education, not tax, legal or investment advice. Nothing is sold here, no product is recommended, and RLF accepts no funding from financial companies. Rules and figures change; each one above shows its source and date. Check anything you plan to act on with your state insurance department or a qualified professional who is not paid on the product.