If a person changes the beneficiaries in a will or trust that would not automatically change all the assets that are listed in the documents. With some financial instruments, like a life insurance policy, the beneficiary designation is “the trump card of estate planning.” This article discusses an example of an ex-wife being entitled to life insurance proceeds because the husband amended his will but forgot to change the insurance policy to name his new wife as the beneficiary. It is a critical part of estate planning to frequently review beneficiary designations of certain financial assets. This article has a list of assets that the beneficiary designation trumps the directive of a will.
See Mark Wight, Error in Planning Can Benefit the Ex-Spouse, Idaho Estate Planning, June 1, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
