The Short Version
A lot of your money never touches your will. Your retirement accounts, life insurance, annuities, and any pay-on-death or transfer-on-death accounts pass directly to whoever is named on the beneficiary form, outside your will or trust entirely. If the form and the will disagree, the form wins. That is why a flawless will can still hand your savings to the wrong person, and why beneficiary designations are the #1 cause of accidental disinheritance. See what happens to your IRA or 401(k) when you die →
The Mistake That Undoes Good Plans
The danger is a stale form. A life insurance policy still naming an ex-spouse. A 401(k) naming a parent who has died. An account with no backup beneficiary. Here is the trap most people miss: Florida law does void most designations to an ex-spouse at divorce, but it does not reach 401(k)s and other employer plans. Federal law overrides Florida’s rule there and pays whoever is on the form, ex-spouse included. The state rule also has exceptions, and a company that never learned of the divorce can pay the old form before anyone objects. If you do not change the forms yourself, your ex can still collect. The plan on paper looks perfect; the forms quietly say otherwise.
When did you last check your beneficiary forms?
Book a free 30-minute consult. We audit every designation and align it with your plan, the cheapest, highest-impact fix there is.
Book your free consultPrimary, Contingent, and Why Backups Matter
Your primary beneficiary is first in line; your contingent (backup) takes over only if the primary cannot. Skipping the contingent is a common, costly oversight: if your only named beneficiary dies before you and there is no backup, the asset can fall into your probate estate, the very thing the designation was meant to avoid. Name both, and keep both current.
Who Should You Name?
Naming "my estate" usually forces the asset through probate and can speed up taxes, so it is rarely best. Naming individuals is simple but gives no protection if a beneficiary is a minor, disabled, or struggling with money. Naming a properly drafted trust can protect the funds, though for retirement accounts it must be done carefully because of the SECURE Act’s ten-year payout rule. The right answer depends on your family, and it is worth getting right.
Frequently Asked Questions
Do Beneficiary Designations Override a Will in Florida?
Yes. This is the single most misunderstood thing in estate planning. Your retirement accounts, life insurance, annuities, and any pay-on-death or transfer-on-death accounts pass to whoever is named on the beneficiary form, completely outside your will or trust. If your will says one thing and your 401(k) beneficiary form says another, the form wins. That is why a perfectly drafted will can still send money to the wrong person, and why reviewing your designations is as important as the will itself.
What Happens if I Forget to Update a Beneficiary?
The old designation controls, even if your life has completely changed. This is the number one cause of accidental disinheritance: a life insurance policy still naming an ex-spouse, a 401(k) naming a parent who has since died, an account with no contingent beneficiary. Florida law does void most beneficiary designations in favor of an ex-spouse at divorce, but never rely on it: federal law overrides it for 401(k)s and other employer plans (the plan pays the named ex anyway), the statute has a list of exceptions, and a company that has not been told about the divorce can pay the old form. Update every form after a divorce. Stale designations quietly undo good plans.
What Is the Difference Between a Primary and Contingent Beneficiary?
The primary beneficiary is first in line to receive the asset. The contingent (backup) beneficiary receives it only if the primary has died or cannot take it. Naming a contingent beneficiary matters more than people think: if your only named beneficiary dies before you and there is no backup, the asset can default into your probate estate, the exact outcome a beneficiary designation was supposed to avoid. We make sure both levels are named and current.
Which Assets Pass by Beneficiary Designation?
Retirement accounts (IRAs, 401(k)s), life insurance, annuities, and bank or brokerage accounts set up as pay-on-death (POD) or transfer-on-death (TOD). Florida real estate can also pass outside probate through a lady bird deed. All of these skip your will entirely. The assets that do go through your will are the ones left in your sole name with no beneficiary, survivorship, or POD feature, which is why coordinating the two is the heart of a working plan.
Should My Beneficiary Be My Estate, My Trust, or a Person?
It depends, and naming the wrong one causes problems. Naming "my estate" usually forces the asset through probate and can accelerate taxes on retirement accounts, so it is rarely the best choice. Naming individuals is simple but offers no protection if a beneficiary is a minor, disabled, or struggling. Naming a properly drafted trust can protect the money and, for retirement accounts, must be done carefully because of the SECURE Act’s ten-year payout rule. We match the designation to your goals.
How Often Should I Review My Beneficiary Designations?
At every major life event, marriage, divorce, a birth, a death, and otherwise every few years. It takes minutes and prevents the most common and most painful estate-planning failures. When we build a plan, we audit every designation, IRA, insurance, POD, and joint account, and align them with your will or trust so nothing silently disinherits the people you love. It is the cheapest, highest-impact thing most people can do.
Common Situations
The ex who inherited. A man divorced, remarried, and updated his will, but never changed the beneficiary on his employer 401(k). At his death, federal law required the plan to pay his ex-wife, the name still on the form, not his current wife. The form, not the will and not even Florida’s divorce rule, controlled.
The missing backup. A widow named only her sister on her IRA. Her sister died first, and with no contingent beneficiary the account dropped into probate, delaying and shrinking what reached her children.
Sources of Law
- Beneficiary designations, POD/TOD accounts, and life insurance/retirement proceeds pass outside the will or trust. Fla. Stat. §732.507 (divorce voids will provisions for a former spouse); §736.1105 (trusts); §732.703 (divorce also voids most non-ERISA beneficiary designations to a former spouse, with exceptions and payor protections). ERISA preemption: Egelhoff v. Egelhoff, 532 U.S. 141 (2001); Kennedy v. Plan Administrator for DuPont, 555 U.S. 285 (2009). Retirement payout: SECURE Act 10-year rule. (retrieved 2026-06-10)
Updated on June 10, 2026. Reviewed by Kevin D. Klagge, Esq., Fla. Bar No. 99502. General information about Florida law, not legal or tax advice, and no attorney-client relationship is created. Coordinating designations depends on your facts. Do not send confidential information until we have agreed to represent you.