How to Change a Beneficiary on Any Account

Before You Start: Make a List and Check for Restrictions

A beneficiary designation usually overrides your will. FINRA, the securities industry regulator, says a transfer-on-death registration or other beneficiary document supersedes your will, and its example is a will that splits assets between two children while the form names only one. Our guide to what a beneficiary is explains why.

Start by listing every account that has a beneficiary:

• Life insurance policies, including any through your employer
• 401(k), 403(b), and pension plans
• IRAs and Roth IRAs
• Annuities
• Bank accounts with a payable-on-death (POD) designation
• Brokerage accounts with a transfer-on-death (TOD) designation
• Real estate with a transfer-on-death deed, where your state allows it

Then ask each institution who it has on file. FINRA advises asking your firm who it has recorded as a beneficiary for each of your accounts. Many people discover an old name, or no name, at this step.

Restrictions that can block a change

• Irrevocable beneficiaries. The National Association of Insurance Commissioners (NAIC) defines an irrevocable beneficiary as one with a vested interest in a life insurance policy's proceeds during the insured's lifetime. The policy owner can change the designation only with that person's consent.
• Spousal consent. Federal law protects spouses under certain employer plans. See the section below.
• Divorce agreements and court orders. A divorce decree or separation agreement may require you to keep a former spouse or children as beneficiaries. Read yours before you change anything.

How to Change a Beneficiary by Account Type

The names of the forms differ, but the pattern is the same: ask the institution for its form, complete it, and return it. Many institutions accept changes online. Others require paper forms, and some may ask for extra signature verification. Follow your institution's instructions.

FINRA also notes that the way a brokerage account is titled typically changes once you make a TOD designation. If you move an account to another firm, confirm the beneficiary designations transfer with it.

For more on what happens at each type of account after a death, see retirement accounts when someone dies and bank accounts when someone dies.

When Your Spouse Must Consent

Some employer retirement plans are covered by a federal law that protects a surviving spouse. Under 29 U.S.C. §1055, giving up the spouse's survivor benefit takes effect only if the spouse consents in writing, the election names a beneficiary that cannot be changed without the spouse's consent, the spouse's consent acknowledges the effect of the election, and the consent is witnessed by a plan representative or a notary public. If a spouse cannot be located, the plan may accept proof of that. A consent applies only to that particular spouse.

In plain terms: if you are married and want to name someone other than your spouse, such as a child from a prior marriage, ask the plan administrator what its rules require before you submit anything. The change may not be valid without your spouse's signed consent.

This federal rule is aimed at employer plans. IRAs follow the custodian's rules and state law, and some states give a surviving spouse rights in certain property. If you are changing a spouse's share on any account, consider a short consultation with an estate attorney.

After a Divorce: Do Not Assume the Form Updated Itself

Some states have laws that treat a former spouse as if they had died before you for certain designations. Maine's version of the Uniform Probate Code, for example, says divorce revokes a revocable disposition to a former spouse unless the document or a court order says otherwise.

Those state laws do not always control. In Egelhoff v. Egelhoff, the U.S. Supreme Court held that a Washington statute revoking a spouse's designation on divorce was pre-empted by ERISA as applied to employee benefit plans. In Kennedy v. Plan Administrator for DuPont Savings and Investment Plan, the Court held that ERISA provides no exception to the plan administrator's duty to act in accordance with plan documents.

The practical lesson is simple. After a divorce, change your beneficiary on every account yourself, and read your divorce decree to see if it requires something different. Do not rely on state law to fix the form for you.

Choosing the New Beneficiary

• Name a contingent beneficiary. If the primary beneficiary dies first and no backup is on file, the money may default to your estate. Our beneficiary guide covers primary and contingent designations.
• Use full legal names and identifying details. Include date of birth and, where the form asks, the relationship. Vague entries such as "my children" can cause delays.
• Be careful with minors. A child who is a minor cannot generally take direct control of large sums. See the section on naming a minor child in our beneficiary guide, and consider speaking with an attorney about a trust or custodian.
• Think about a trust. Some people name a living trust as beneficiary of certain accounts. This is a planning decision with tax and control effects; see what a living trust is and speak with a professional.

After You Make the Change

1. Get written confirmation. Download or request a confirmation from the institution. Do not assume a submitted form was processed.
2. Check the record. A few weeks later, log in or call and confirm the beneficiary shown matches what you intended.
3. Keep copies. Store them with your will and other planning documents.
4. Tell your executor and family where records are. Our emergency information list gives you a place to record each account and its beneficiary.
5. Set a review date. Check designations after marriage, divorce, a birth, a death, or a big change in your finances.

If you are the one settling an estate and find an outdated designation, our guides on how to settle an estate and being an executor explain the next steps.

Frequently Asked Questions