Most People Get This Will Mistake Wrong

Do You Need to Update Your Will or Beneficiaries?

Introduction

Knowing when to update your will or beneficiaries is essential for making sure your estate plan works as intended. You may not need to rewrite your will to change who inherits your assets, but the answer depends on how those assets are titled and whether they pass through probate.

What Changed, Who It Affects and Why It Matters

You may not need to rewrite your will to change who inherits your assets. But whether you do depends on a key distinction many households overlook: how the asset is titled and whether it passes through probate.

That distinction can have real financial consequences, especially for retirement accounts, bank accounts and estate plans that involve trusts.

At a high level, estate planning attorney Harry Margolis says the answer hinges on one question: Does the asset pass through probate?

For millions of households, a growing share of wealth sits in accounts with named beneficiaries, such as 401(k)s, IRAs and transfer-on-death accounts.

Those assets bypass the will entirely.

That means:

You can update beneficiaries directly with the account provider
Your will has no authority over those assets
Conflicts between documents can create legal confusion or disputes

For retirees and pre-retirees, the stakes are especially high. These accounts often represent the bulk of household wealth.

What This Means for You

If you want to change who receives a retirement account or similar asset, you likely do not need to update your will or beneficiaries in both places.

But if your will and beneficiary forms are not aligned, your estate plan may not work as intended.

When You Don’t Need to Update Your Will or Beneficiaries

Assets with named beneficiaries operate outside probate. These typically include:

Retirement accounts such as IRAs and 401(k)s
Brokerage accounts with transfer-on-death designations
Bank accounts with payable-on-death instructions

In these cases, the beneficiary designation overrides your will.

“Your will only affects your probate property,” Margolis said. “When you name a beneficiary on an account, that asset does not go through probate.”

Where Problems Can Arise

Trouble starts when your documents are inconsistent.

If your will names one person and your beneficiary designation names another, the designation generally controls. But that mismatch can lead to disputes among heirs or questions about your intent.

For example, if you update your will but forget to update your IRA beneficiary, your estate may not be distributed as you expect.

When You Do Need to Update Your Will

If the asset passes through probate, you must update the will.

That includes:

Personal property, such as collectibles or heirlooms
Real estate not otherwise titled to avoid probate
Assets held solely in your name without a beneficiary designation

In these cases, changing who inherits the asset requires revising the will, either through a codicil or by drafting a new document.

Margolis notes that, in practice, attorneys often recommend creating a new will rather than amending an old one.

How Trusts Change the Equation

For households with revocable trusts, the process can be simpler.

Often, the will serves as a “pour-over” document, directing assets into the trust. The trust then determines who receives them.

In that case, changing beneficiaries typically involves amending the trust, not the will.

Why Consistency Matters

Even when legal rules are clear, inconsistent documents can create unnecessary friction.

Aligning your:

Will
Beneficiary designations
Trust documents

can help avoid confusion, reduce the risk of disputes and ensure your wishes are carried out efficiently.