You Made a Will. Now Check Who Actually Gets the Money.
A will is an important part of protecting your family, but it does not control every financial asset you leave behind. Life insurance, retirement accounts, annuities, and some bank or investment accounts may pass according to a beneficiary designation rather than the instructions in a will.¹
The Texas Department of Insurance explains the basic rule plainly: “Your life insurance company will make payments after your death to the person you name in your policy.”² When the name on the policy no longer matches the policyholder’s wishes, the family may face a result no one expected.
⚠️ When the Documents Disagree
Consider someone who bought life insurance while married and named a spouse as the beneficiary. Years later, the couple divorced. The policyholder updated the will, remarried, and intended the death benefit to go to the children. If the policy’s beneficiary designation was never changed, the will may not be enough to carry out that intention.
The American Bar Association notes that a will does not govern certain nonprobate assets that pass by ownership or contract. Texas legal guidance similarly explains that insurance proceeds, retirement funds, and payable-on-death accounts generally pass to the person named on the contract or account.¹ ³
Divorce orders, federal retirement-plan rules, trusts, community-property questions, and other legal issues can affect the outcome. Complicated situations should be reviewed with an estate-planning attorney.
🔎 Small Mistakes Can Create Large Problems
An outdated name is only one concern. Some people name a primary beneficiary but never add a contingent beneficiary. If the primary beneficiary dies first, the policy may not distribute the money as intended. When several beneficiaries are listed, the percentages should be clear and add up correctly.⁴
Minor children require additional planning. Insurance proceeds payable directly to a child may require a court-appointed guardian or conservator to manage the funds. A properly drafted trust or another legal arrangement may be more appropriate, but that decision belongs with an attorney.¹
There is also the policy no one can find. The National Association of Insurance Commissioners recommends checking policies annually, updating beneficiaries after major life events, telling beneficiaries that coverage exists, and keeping the policy where family members or trusted advisers can locate it.⁵
Retirement accounts deserve a separate review. Federal law gives surviving spouses special rights under many employer-sponsored retirement plans. In many defined contribution plans, a married participant who wants to name someone other than a spouse may need the spouse’s written consent.⁶ A will does not replace the plan’s rules.
✅ Review the Whole Plan
Beneficiary information should be reviewed after marriage, divorce, remarriage, the birth or adoption of a child, the death of a beneficiary, retirement, or a job change. It should also be checked periodically when no major event has occurred.
Review life insurance policies, retirement accounts, annuities, and payable-on-death or transfer-on-death accounts. Confirm the names, verify the percentages, and add contingent beneficiaries when appropriate. Then compare those choices with the will or trust. The goal is not simply to collect documents. It is to make sure they work together.
An insurance professional can explain the beneficiary information listed on a policy or annuity contract. An attorney should address wills, trusts, probate, divorce, guardianship, and ownership disputes. A tax professional may also be needed. A will is important, but it is not the entire plan. Check the names, confirm the percentages, make sure the coverage remains active, and tell someone where the records are kept.
Don’t be careless enough to leave your family a financial mess over paperwork you could have fixed today. Once you’re gone, your intentions won’t matter. The documents will.
🛡️ Review Your Coverage
When was the last time you checked whether the beneficiaries on your policy still match the people you want to protect? If you’re not completely sure, would it make sense to ask your broker for a review? If you don’t have someone you trust, DarkHorse Insurance Solutions can help you understand what’s currently on file and guide you toward the appropriate legal or tax professional when needed.
📞Connect With
Guy Bester, CAA
Financial Professional
Phone: (512) 710-9680
May serbisyo kami sa wikang Tagalog
This article is provided for general educational purposes and does not constitute legal, tax, or estate-planning advice. Laws, court orders, plan rules, and contract terms may affect how assets are distributed. Consult a qualified professional about your circumstances.
Notes
American Bar Association, “Introduction to Wills,” accessed July 30, 2026.
Texas Department of Insurance, “Life Insurance Guide,” last modified December 12, 2025.
Texas RioGrande Legal Aid, “Estate Planning: Planning Who Gets Your Property,” TexasLawHelp.org, last reviewed September 27, 2022.
National Association of Insurance Commissioners, “Life Insurance,” September 1, 2008.
National Association of Insurance Commissioners, “What to Know About Life Insurance Beneficiaries,” September 12, 2023.
U.S. Department of Labor, Employee Benefits Security Administration, “FAQs About Retirement Plans and ERISA,” accessed July 30, 2026.
