A number of years ago, a dear client of mine passed away unexpectedly. While his death was a shock to all of us, what came after was an even bigger shock for his current wife. It turned out the beneficiary named on his retirement account wasn’t her—it was his ex-wife.

I can assure you that plan custodians don’t care about explanations like, "Oh, he meant to name me as the beneficiary." They follow the paperwork. Unfortunately for this wife, despite their long marriage, the ex-wife was still the named beneficiary. Thankfully, there were other significant assets, which softened the blow, but it still hurt.

Why This Matters
This situation is a reminder of how critical it is to regularly check your beneficiary designations. These designations are binding, and the people managing these accounts will always go by the paperwork—not what someone says after the fact.

So how often should you review them? At least once a year. It’s a simple step that can save your loved ones from emotional and financial pain.

Here’s What to Check:

1. IRAs: Make sure the beneficiary listed on your IRA is still the person you intend to inherit those funds.
2. Annuities: Double-check the beneficiary on any annuities you hold. These often get overlooked.
3. Life Insurance Policies: Ensure your life insurance payouts go to the person you want them to—don't assume it’s set in stone forever.

Why Beneficiary Designations Matter
These designations aren’t just important for planning—they are a great way to pass assets without the delays and costs of probate. But that benefit only works if the right person is listed. If you haven’t checked your paperwork in years, now’s the time to make sure everything is up to date.

At Clarity Wealth, we want to ensure your assets go where you intend. If you have questions about your beneficiaries or need help reviewing your accounts, come see us. We’d love to help you avoid the same mistake and secure peace of mind for your loved ones.

Take care, and remember—keeping your beneficiary designations current is one of the simplest but most effective ways to protect the people you care about most.