Matters of Life and Death: Make Your List and Check It Twice

December 23, 2025

The article warns about common and costly mistakes people make with beneficiary designations on financial accounts and insurance policies. Many individuals fail to update beneficiaries after major life changes like divorce or remarriage, which can result in assets going to unintended recipients since beneficiary designations override wills and trusts. The author illustrates this problem through a fictional scenario where a woman's life insurance proceeds went to her ex-husband instead of her current family because she never updated the designation after remarrying.

Who is affected

People who forget to name or update beneficiaries on their accounts
Surviving spouses and family members who may be unintentionally excluded from receiving benefits
Ex-spouses or outdated beneficiaries who may receive unintended assets
Account holders who have experienced life changes such as divorce, remarriage, or changes in family circumstances
Individuals with life insurance policies, retirement accounts, bank accounts, annuities, and stock accounts

What action is being taken

No explicit ongoing actions are stated in the article. The article provides recommendations and warnings but does not describe actions currently being taken.

Why it matters

This issue matters because beneficiary designations legally supersede wills and trusts, meaning assets can pass to unintended recipients regardless of estate planning documents. The consequences are often irreversible, with no legal recourse for families who are inadvertently excluded. These mistakes can result in probate court proceedings and cause significant financial and emotional harm to intended heirs, while potentially enriching individuals the deceased no longer wished to benefit.

What's next

No explicit next steps stated in the article

Read full article from source: Michigan Chronicle