The Importance of Updating Your Beneficiaries

A few weeks ago, my fiancé received an email from the custodian of his 401(k) reminding him to review his beneficiary designations. While the reminder surprised him, he was also grateful for it. As it turned out, he had never named a beneficiary when he initially set up the account. Like many people, it simply was not something he prioritized at the time. Whether it slipped his mind or did not seem urgent then, life has changed since, and it became clear that this was an important detail to revisit.

Situations like this serve as a helpful reminder to periodically review your own beneficiary information. It only takes a few minutes and should be completed every three to five years. Be sure to designate both primary and contingent beneficiaries. The process has become easier, often requiring only basic details, such as name and date of birth. However, providing additional information — including mailing address, phone number, and email address — can make things much smoother down the line.

Keeping your beneficiaries current helps ensure your assets are distributed according to your wishes. Life events can quickly make outdated designations problematic. For example, an ex-spouse may still be listed following a divorce, or a previously named charity may no longer exist. Additionally, if a primary beneficiary passes away before you and no contingent beneficiary is listed, your intended plan may not unfold as expected. Even positive life changes, such as welcoming a new child, can create unintended gaps if updates are not made.

While it can be uncomfortable to think about, planning for the unexpected is an important step to protecting your loved ones and honoring your financial legacy. Without designated beneficiaries, your assets may pass to your estate, where state law will ultimately determine distribution. In many cases, beneficiary designations override instructions in a will. For instance, if you named a friend as your beneficiary but did not update the designation after their passing, their heirs could potentially inherit those assets, even if that was not your intention.

Designating Beneficiaries for Schwab Accounts

If you are a Charles Schwab investor, updating your beneficiaries can be done easily online at schwab.com.

For retirement accounts:

1. Click the “Profile” icon and choose “Beneficiaries”
2. Select “Name Beneficiary” or “Edit Account” to update information
3. Enter details, review and “Submit” your changes

For non-retirement accounts:

1. Navigate to “Legal & Account Forms”
2. Select Designated Beneficiary Plan Application under Account Servicing Forms
3. Complete, sign, and return the form

If your accounts are held elsewhere, you can typically review and update beneficiary information through your provider’s website or customer service team. If you are unsure who to name or how to structure your designations, this is a great opportunity to speak with your estate planning attorney and financial advisor. They can provide objective guidance, help ensure fairness among beneficiaries, and discuss advanced options, such as establishing a trust.

If you have questions about your investment accounts and want to ensure your assets will be distributed according to your wishes, please contact Tull Financial Group at (757) 436-1122. We are here to help you protect what you have built and plan with confidence.

This post was updated on May 8, 2026.