Do Beneficiary Designations Override a Will?

Often people assume their will controls the distribution of all their assets. In practice, that is not always the case. A critical issue in estate litigation is whether beneficiary designations override the terms of a will. In Florida, the answer is often yes.

Connect with a Pompano Beach estate litigation lawyer to learn more about how beneficiary designations function and how they interact with a will. This knowledge is essential for those creating estate documents.

What Is a Beneficiary Designation?

A beneficiary designation is a contractual instruction that directs an asset to transfer automatically to a named individual upon the owner’s death. These designations are common in:

• Life insurance policies
• Retirement accounts such as 401(k)s and IRAs
• Payable-on-death (POD) bank accounts
• Transfer-on-death (TOD) investment accounts

Because these assets pass by contract rather than through probate, they are considered non-probate assets.

A will only governs assets that pass through probate. Probate is the court-supervised process of validating a will, paying creditors, and distributing estate property.

Non-probate assets, by contrast, transfer directly to the named beneficiary outside of probate. The financial institution or insurance company distributes the funds according to the beneficiary form on file, regardless of what the will says.

For example, if your will states that all assets should go to your two children equally, but your life insurance policy names only one child as the sole beneficiary, the policy proceeds will generally go entirely to that one child.

Share the details of your situation with the attorneys at Mark R. Manceri, P.A. Legal professionals are available to ensure an estate is administered properly and heirs receive what they are entitled to under Florida law. When you are ready to learn more, schedule a confidential consultation.