What happens to a bank or investment account with an outdated beneficiary listed?

Beneficiary designations control who inherits the account, and they override anything your will or trust says. If your designation is outdated, the money goes to whoever is named, even if that's an ex-spouse, a deceased person, or someone you've since fallen out with. Courts routinely enforce stale designations against the family's wishes, and 'I meant to change it' carries no legal weight. This is one of the most common and costly estate mistakes. Audit every retirement account, life insurance policy, and payable-on-death account at least yearly and after any major life change. If a named beneficiary has died and there's no contingent beneficiary, the asset may fall into probate, defeating the purpose.