It’s tax season. You’re already pulling bank statements, retirement account summaries, insurance paperwork, and last year’s returns. You’re reviewing income, expenses, and big-picture plans.
That makes right now the most natural – and often overlooked – time to review your estate planning documents, especially your designated beneficiaries.
Why? Because financial paperwork and legal documents tend to live in the same places, and changes to one almost always affect the other. A quick beneficiary check during tax season can prevent costly probate delays, family disputes, and unintended outcomes later.
Many people assume their will determines who receives everything. In reality, beneficiary designations override a will.
Accounts that pass by beneficiary designation include:
Retirement accounts (401(k)s, IRAs)
Life insurance policies
Transfer-on-death (TOD) and payable-on-death (POD) accounts
Some annuities and investment accounts
If these beneficiaries are outdated, missing, or incorrectly listed, your estate plan may not work the way you expect – and probate problems can follow.
Common issues we see:
An ex-spouse still listed as beneficiary
A deceased beneficiary with no backup named
Minor children named outright (triggering court involvement)
Beneficiary designations that conflict with a trust-based plan
These mistakes often don’t surface until after death – when it’s too late to fix them.
You already have the right documents in front of you:
Retirement account statements
Life insurance summaries
Investment account records
Prior-year tax returns
Before you hand everything over to your accountant, take a few extra minutes to confirm:
Who is currently listed as beneficiary on each account
Whether those choices still match your wishes
Whether your estate plan relies on a trust that should be named instead of an individual
This small step can dramatically reduce the risk of assets being pulled into probate unnecessarily.
Tax season is also a smart time to confirm that the people involved in your plan are aligned and informed.
Consider reviewing:
Powers of attorney – Are the right people named? Are they still available and trustworthy?
Healthcare directives – Do they reflect your current wishes?
Executor or trustee selection – Does this person know they’ve been named?
Document access – Does someone you trust know where your estate planning documents are stored?
When these pieces are clear, transitions are faster, smoother, and far less stressful for your loved ones.
Clean beneficiary designations can:
Keep assets out of probate court
Reduce delays in asset distribution
Minimize family disputes
Lower administrative costs
Ensure your wishes are carried out as intended
Probate issues often aren’t caused by lack of planning – they’re caused by outdated or disconnected planning.
Doing this review in January or February means you’re not scrambling in April – or leaving loose ends that create problems down the road.
Tax season is about clarity and preparation. Pairing it with a quick estate planning check is efficient, practical, and protective.
And when spring arrives and a new – arguably better – season is in full bloom, you’ll be able to enjoy it knowing your financial and legal house is in order.
If you’ve experienced a life change, opened new accounts, or haven’t reviewed your beneficiary designations in years, now is the time.
👉 Schedule a review with an experienced estate planning and probate attorney to make sure your beneficiaries, documents, and overall plan work together – and protect your family from unnecessary probate issues later.
Do beneficiary designations really override my will?
Yes. Beneficiary designations on retirement accounts, life insurance policies, and payable-on-death accounts override your will, even if your will says something different. If those designations are outdated or incorrect, your assets may go to the wrong person or trigger unnecessary probate issues.
How often should I review my beneficiary designations?
At least once a year – and tax season is an ideal time because you already have your financial documents in hand. You should also review beneficiaries after major life events such as marriage, divorce, remarriage, births, deaths, or significant changes in finances.
What happens if I don’t name a beneficiary?
If no beneficiary is listed, or if the beneficiary has passed away and no backup is named, the asset may be forced into probate. This can delay distribution, increase legal costs, and create stress for your loved ones.
Should I name my trust as a beneficiary instead of an individual?
In many cases, yes – especially if you have minor children, blended families, or specific distribution instructions. Naming a trust can provide better control, creditor protection, and probate avoidance. This should always be coordinated with an estate planning attorney to avoid unintended tax or administrative issues.
Why should I review powers of attorney during tax season?
Tax season highlights who is handling financial matters. Reviewing powers of attorney ensures the right person can legally step in if you become incapacitated – without court involvement. Outdated or missing powers of attorney often lead to costly guardianship proceedings.
Does reviewing beneficiaries affect my taxes?
Reviewing beneficiaries doesn’t change your tax return, but it can have significant tax consequences for your heirs. Proper beneficiary planning can reduce income tax burdens on inherited retirement accounts and help preserve more wealth for your family.
Can my accountant handle beneficiary and estate planning issues?
Accountants play a vital role in tax planning, but beneficiary designations and probate avoidance are legal issues. Estate planning attorneys look at how documents work together to avoid court involvement, reduce conflict, and ensure your wishes are legally enforceable.
What’s the biggest mistake people make with beneficiaries?
Assuming everything is “already taken care of.” Life changes, laws change, and accounts get opened over time. Beneficiary designations that aren’t reviewed regularly are one of the most common causes of probate disputes and estate administration delays.
