How to keep your money out of probate: name beneficiaries on your financial accounts
A simple step that can save your loved ones time, stress, and legal fees…
When you're thinking about how to make things easier for the people you care about after you're gone, there's one move that’s easy to miss—but incredibly effective: naming beneficiaries directly on your financial accounts.
It’s one of the most powerful ways to make sure your money and assets go exactly where you want them to—without court delays, confusion, or extra costs.
What does “naming a beneficiary” actually mean?
A beneficiary is the person (or people) you name to receive the money in a financial account when you die. You can do this for things like:
Checking and savings accounts
Retirement accounts (401(k), IRA, etc.)
Life insurance policies
Pensions
Investment accounts
When you name someone directly on the account, that money can transfer straight to them after your death—no probate, no waiting.
Why it matters
It avoids probate.
Accounts with named beneficiaries usually bypass the court system completely, even if you don’t have a will. That means faster access to funds and less paperwork for your loved ones.
It reduces conflict.
When beneficiaries are clearly named, there’s less room for confusion, surprises, or disputes about who gets what.
It keeps your wishes current.
Your estate plan might change over time—and beneficiary designations help ensure the right people receive the right assets, even if your trust or will hasn’t been updated yet.
What to do next
Step 1—Review your accounts.
Look at bank accounts, retirement funds, life insurance, pensions, and investments. See if a beneficiary is listed—and whether it’s still the right person.
Step 2— Update as needed.
Most institutions make it easy to add or change a beneficiary—often online or with a quick phone call. Be sure to name contingent (backup) beneficiaries, too.
Step 3 — Double-check for consistency.
The beneficiaries you name directly on your accounts will override what’s written in your will or trust. So if they’re out of date, your money could go to the wrong person—even if your estate plan says otherwise. Make sure your named beneficiaries reflect your current wishes and are consistent with your overall plan.
Our take
Naming beneficiaries is a simple step that ensures your assets go to the right people with less hassle. It helps your loved ones avoid delays, confusion, and legal hurdles—so things can move forward the way you intended.
Want to take the next step?
If you’re ready to go beyond the basics and make sure everything is in order, our Advance Planning Course can help. It walks you through key decisions, documents, and conversations—so you can leave things in good hands, with less stress for the people you care about.
Everything you need to plan ahead—organized, explained, and ready when it matters most.
