{"id":9847,"date":"2021-03-15T01:31:46","date_gmt":"2021-03-15T06:31:46","guid":{"rendered":"https:\/\/agrilife.org\/texasaglaw\/?p=9847"},"modified":"2026-04-17T15:18:05","modified_gmt":"2026-04-17T20:18:05","slug":"have-you-checked-your-beneficiary-designations-account-details","status":"publish","type":"post","link":"https:\/\/agrilife.org\/texasaglaw\/2021\/03\/15\/have-you-checked-your-beneficiary-designations-account-details\/","title":{"rendered":"Have You Checked Your Beneficiary Designations &#038; Account Details?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6613\" src=\"https:\/\/agrilife.org\/texasaglaw\/files\/2018\/07\/Top-10.jpg\" alt=\"\" width=\"150\" height=\"213\" \/><\/p>\n<p>Anyone who has attended farm or ranch educational programs around the country have likely heard talk of the importance of having an estate plan.\u00a0 Certainly, every person should have a will, power of attorney, healthcare power of attorney, and advanced healthcare directive.\u00a0 These are the basic building blocks of any estate plan.\u00a0 [To read more about these documents, <a href=\"https:\/\/agrilife.org\/texasaglaw\/files\/2020\/11\/Owing-Your-Piece-of-Texas-Key-Laws-Texas-Landowners-Need-to-Know.pdf\">click here<\/a> and see Chapter 14.]\u00a0 Also critical to a successful estate plan is reviewing beneficiary designations and account signatory cards\/creation documents to ensure these are up to date and that the account holder understands the effect of these designations at death. Although less commonly discussed as part of estate planning curriculum, these simple steps are extremely important to ensure one\u2019s wishes are carried out.<\/p>\n<div id=\"attachment_9848\" style=\"width: 510px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-9848\" class=\"wp-image-9848\" src=\"https:\/\/agrilife.org\/texasaglaw\/files\/2021\/03\/micheile-henderson-PpZasS086os-unsplash-1024x1022.jpg\" alt=\"\" width=\"500\" height=\"499\" srcset=\"https:\/\/agrilife.org\/texasaglaw\/files\/2021\/03\/micheile-henderson-PpZasS086os-unsplash-1024x1022.jpg 1024w, https:\/\/agrilife.org\/texasaglaw\/files\/2021\/03\/micheile-henderson-PpZasS086os-unsplash-300x300.jpg 300w, https:\/\/agrilife.org\/texasaglaw\/files\/2021\/03\/micheile-henderson-PpZasS086os-unsplash-150x150.jpg 150w, https:\/\/agrilife.org\/texasaglaw\/files\/2021\/03\/micheile-henderson-PpZasS086os-unsplash-768x766.jpg 768w, https:\/\/agrilife.org\/texasaglaw\/files\/2021\/03\/micheile-henderson-PpZasS086os-unsplash-1536x1532.jpg 1536w, https:\/\/agrilife.org\/texasaglaw\/files\/2021\/03\/micheile-henderson-PpZasS086os-unsplash-2048x2043.jpg 2048w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><p id=\"caption-attachment-9848\" class=\"wp-caption-text\"><em>Photo by <a href=\"https:\/\/unsplash.com\/@micheile?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Micheile Henderson<\/a> on <a href=\"https:\/\/unsplash.com\/s\/photos\/elderly?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Unsplash<\/a><\/em><\/p><\/div>\n<p style=\"text-align: center;\"><strong>Probate v. Non-Probate Assets<\/strong><\/p>\n<p>\u00a0Oftentimes, a person\u2019s estate is made up of both probate and non-probate assets.\u00a0 Probate assets are those that pass through the probate process, ideally by will if the person has one at their death.\u00a0 For example, if a person leaves her home to her son in her will, this would be a probate asset.\u00a0 Non-probate assets are those that pass through other means, generally by contract or designation.\u00a0 For example, if someone purchases life insurance and designates her son as the beneficiary, the life insurance proceeds would pass by contract outside of the probate process.<\/p>\n<p>Importantly, non-probate assets pass by contract, regardless of what the will instructs.\u00a0 For example, if a person\u2019s life insurance policy designated her son as the beneficiary, but her will says that she wants all assets, including her life insurance policy, to go to her daughter.\u00a0 The life insurance proceeds would go to her son by the designation, regardless of the will.<\/p>\n<p style=\"text-align: center;\"><strong>Review Beneficiary Designations<\/strong><\/p>\n<p>People should take time to review beneficiary designations and ensure they are up to date and reflect current wishes. Oftentimes, a beneficiary designation is done, forgotten, and not thought about until a death occurs.\u00a0 This is particularly important because oftentimes the value of these assets may be substantial.\u00a0 [To read about a case involving this issue, <a href=\"https:\/\/agrilife.org\/texasaglaw\/2016\/12\/19\/reminder-check-beneficiaries\/\">click here<\/a>.]<\/p>\n<p>Common assets involving beneficiary designations include life insurance, IRAs, 401Ks, and transfer on death accounts.\u00a0 I always recommend a yearly review of all beneficiary designations just to keep this issue on people\u2019s minds and ensure they do not forget to do so.\u00a0 An added benefit of this process is that it will also encourage people to create a list of their accounts and assets, which is also helpful in the event of one\u2019s death.<\/p>\n<p style=\"text-align: center;\"><strong>Review Account Signatory Cards\/Account Creation Documents<\/strong><\/p>\n<p>Also important is to review how bank accounts are set up and the signatory card contents for such accounts.\u00a0 Even one checkmark or word on a signature card can have major impacts on what happens to these assets upon a person\u2019s death.\u00a0 For example, if a joint account includes language regarding \u201crights of survivorship,\u201d the joint account holder would receive all funds upon the death of the other holder.\u00a0 If, however, this language is not included, the account would likely be part of the probate estate and pass either by will or the intestate succession process.\u00a0 Again, for many people, these accounts may have been set up years or even decades ago without a second thought being given to the precise language included on the signature card or other account creation documents.\u00a0 [To read about a case involving this issue, <a href=\"https:\/\/agrilife.org\/texasaglaw\/2019\/06\/18\/case-illustrates-importance-of-bank-account-details\/\">click here<\/a>.]<\/p>\n<p style=\"text-align: center;\"><strong>Conclusion<\/strong><\/p>\n<p>There are many different moving pieces when it comes to developing and reviewing an estate plan.\u00a0 It can be easy to overlook the importance of reviewing details like beneficiary designations or account signatory cards, but doing so is critically important to ensure one\u2019s wishes are carried out at death.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Anyone who has attended farm or ranch educational programs around the country have likely heard talk of the importance of having an estate plan.\u00a0 Certainly, every person should have a will, power of attorney, healthcare power of attorney, and advanced healthcare directive.\u00a0 These are the basic building blocks of any estate plan.\u00a0 [To read more about these documents, click here and see Chapter 14.]\u00a0 Also critical to a successful estate plan is reviewing beneficiary designations and account signatory cards\/creation documents to ensure these are up to date and&#8230; <span class=\"read-more\"><a href=\"https:\/\/agrilife.org\/texasaglaw\/2021\/03\/15\/have-you-checked-your-beneficiary-designations-account-details\/\">Read More &rarr;<\/a><\/span><\/p>\n","protected":false},"author":2443,"featured_media":9848,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-9847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-estate-planning"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Have You Checked Your Beneficiary Designations &amp; Account Details? 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