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Beneficiary Designations vs. Your Will: Which Wins?

Princeton New Jersey estate planning attorney reviewing life insurance and retirement account beneficiary designations that override a will.

Beneficiary Designations vs. Your Will: Which Wins?

Here’s a common New Jersey estate planning surprise: your beneficiary designations often control more than your will. In fact, if your will says one thing but your life insurance or retirement account says another, the beneficiary designation usually wins.


That means you could have the best-drafted will in Princeton—but if you forgot to update your beneficiaries, the wrong person could inherit your assets.


What Are Beneficiary Designations?

Beneficiary designations are the names you write directly on accounts such as:

  • Life insurance policies

  • 401(k) and IRA accounts

  • Transfer-on-death (TOD) or payable-on-death (POD) bank accounts

  • Some investment accounts

These assets pass outside of probate and go straight to the person you listed.


How They Override Your Will

If your will says “I leave my retirement account to my spouse,” but your old 401(k) form still lists your ex-spouse—guess what? The ex usually wins.

Courts in New Jersey almost always honor the beneficiary form over the will. That’s why reviewing and updating designations is one of the most important estate planning steps you can take.


Common Mistakes in NJ

  • Not updating after life changes (marriage, divorce, new baby).

  • Listing a minor child directly (which forces court oversight).

  • Forgetting contingent beneficiaries (backup choices if your first choice passes away).

  • Assuming your will “catches” everything (it doesn’t).


How to Keep Everything in Sync

  1. Review your designations annually – especially during tax season.

  2. Align them with your will and/or trust – so there’s no conflict.

  3. Use trusts as beneficiaries – in cases involving minors, special needs, or blended families.

  4. Document your choices clearly – keep copies with your estate plan binder.



How We Help Families in NJ

At The Law Office of Arij H. Syed in Princeton, we don’t just draft wills and trusts—we make sure your beneficiary forms, deeds, and powers of attorney all work together. That’s what creates a truly complete estate plan.




Author Bio Snippet

Arij H. Syed, Esq., is a Princeton-based attorney focusing on estate planning, trusts, and real estate. Voted Top Attorney in New Jersey by Super Lawyer Magazine.

Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Please consult an attorney licensed in New Jersey for advice regarding your individual situation.

 
 
 

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