Beneficiary Review – Quick FAQ for Maryland Clients

Why am I being asked about beneficiary designations?
In Maryland, many assets, such as life insurance, retirement accounts, and certain bank or investment accounts, pass by beneficiary designation, not by your will.  If those designations are outdated, they can override your estate plan.

Does my will control who receives my life insurance or retirement accounts?
Usually, no.  These assets typically pass outside of probate based on the beneficiary form on file with the financial institution, even if your will says something different.

Does my will override beneficiary designations?
No.  In Maryland, beneficiary designations generally control non-probate assets, even if your will says otherwise.

Can my estate plan be considered incomplete without beneficiary reviews?
Yes.  A will or trust that doesn’t coordinate with your beneficiary designations is only doing half the job.

How often should I review my beneficiaries?
At least once a year, and anytime there is a major life change such as marriage, divorce, the birth of a child or grandchild, or the death of a named beneficiary. Use our checklist to review your beneficiaries.

What happens if I never updated a beneficiary after a divorce or death?
The asset may go to the wrong person, be delayed, or be forced into probate.  In some cases, funds can even end up with the State of Maryland as unclaimed property.

What if I don’t remember where all my accounts are?
That’s common—and fixable.  An estate planning review often includes asset and beneficiary discovery.

What if I don’t know who is listed as my beneficiary?
That’s very common.  Many people haven’t looked at their beneficiary forms in years.  Part of an estate plan review is helping identify and confirm those designations.

What if no beneficiary can be found when I pass away?
If the beneficiaries are unclear, deceased, or cannot be located, assets may be delayed, paid to your estate, or transferred to Maryland’s unclaimed property system—creating extra work and stress for your loved ones.

Should I name my minor children as beneficiaries directly?
Usually no.  Naming minor children outright can create court involvement and delays.  In many cases, naming a trust is the better option.

If my beneficiary is deceased, does the money automatically go to their children?
Not always.  It depends on the contract language for the specific account and whether contingent beneficiaries are named.

If I already have an estate plan, do I still need a beneficiary review?
Yes.  Estate planning documents and beneficiary designations must work together.  One without the other can undermine your plan.

What’s the next step if something needs to be updated?
Schedule an Estate Plan Review with a licensed professional, so they can coordinate your beneficiary designations with your overall plan and help ensure everything works the way you intend.

At Atkinson Law, we listen to all our clients and protect their interests so they can receive a positive legal outcome.  We’ll work with you and give you the best possible recommendation for your future.  To schedule an Estate Plan Review, contact us today by calling (410) 882-9595 or visiting our website.