The Hook Law Center has a good explanation of the issues involved with beneficiary designations. Many financial accounts allow you to name a beneficiary who will receive the assets directly without going through probate. Keep this in mind when preparing a will because beneficiary designations supersede the terms of a will.
What kind of accounts commonly request that you name a beneficiary?
- 401(k) – or similar accounts
- Pension plans
- Life insurance policies
Please read the article for more details.