The named recipient on an account or policy, which passes the asset directly and overrides a will.
A beneficiary designation is the instruction on a retirement account, life insurance policy, or payable-on-death account naming who inherits it. These assets transfer directly to the named person, bypassing probate and taking precedence over whatever a will says. Reviewing them after major life events is one of the simplest, highest-impact estate-planning tasks.
Updating a 401(k) beneficiary after a divorce prevents the account from going to an ex-spouse.