The Story:
A father with a significant IRA listed his children as beneficiaries.
Shortly before his death, he wrote a notarized handwritten will with detailed instructions to distribute his estate among family members, including non-children.
Key Issue:
Despite the valid will, the IRA funds followed the beneficiary designations on file with the financial institution, not the will.
Key Takeaways:
Beneficiary Designations Override Wills: Accounts like IRAs, life insurance, and bank accounts with named beneficiaries take precedence over any conflicting terms in a will.
Plan Estate Carefully:
Regularly review and update beneficiary designations to align with your current wishes.
Understand that designated beneficiaries are under no obligation to honor the terms of a will.
Actionable Advice:
Always coordinate estate planning documents (e.g., wills, trusts) with beneficiary designations to avoid unintended outcomes.
This video is for informational purposes only. As always please get professional help before making decision on how to protect your assets.
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