How do beneficiary designations override what my will says?

Beneficiary designations on retirement accounts, life insurance, and annuities are contracts that pass directly to the named person at your death — and they beat your will every time. If your 401(k) names your sister but your will leaves everything to your spouse, your sister still gets the 401(k). These accounts skip probate entirely, which is efficient, but it means an outdated form can send money to an ex-spouse or a deceased relative by accident. That's why reviewing designations is just as important as writing a will. Always name a primary and a contingent (backup) beneficiary, and avoid naming your estate, which can trigger probate and faster taxation of retirement accounts. Check every form after any marriage, divorce, birth, or death. A simple audit of all your accounts in one sitting prevents the most common and avoidable estate mistakes.