The most carefully drafted estate plan can be quietly defeated by a single outdated form. Beneficiary designations on retirement accounts, life insurance, and payable-on-death accounts pass by contract — they override the will and the trust entirely. A client who divorces and never updates the IRA beneficiary can leave a six-figure account to an ex-spouse no matter what the will says. The beneficiary designation review letter is the tool that closes this gap, and it is one of the highest-value, lowest-effort communications an estate attorney sends.
Why designations override the plan
Probate and trust administration distribute assets titled in the decedent's name or the trust's name. But assets with a valid beneficiary designation never enter that system — they pass directly to the named beneficiary by contract. This is true for retirement accounts (IRAs, 401(k)s), life insurance, annuities, and POD/TOD accounts. The will and trust have no authority over them. That is precisely why a plan that ignores designations is incomplete, and why the attorney must affirmatively prompt the client to reconcile them.
What the review letter must include
- A plain-language explanation that designations override the will and trust, so the client understands why this matters.
- A checklist of account types to review: retirement accounts, life insurance, annuities, POD/TOD bank and brokerage accounts, HSAs.
- Primary and contingent reminders — instruct the client to name both, since a missing contingent beneficiary can force probate.
- Coordination guidance on whether to name individuals or the trust, with a note that retirement accounts involve special tax rules best discussed before changing.
- A clear action step — confirm or update each designation with the institution and report back.
- A record that the attorney advised the client to act, protecting against a later claim that the gap was missed.
Starter template
Dear [Client Name],
Now that your estate plan is in place, one important step remains: reviewing the beneficiary designations on your accounts. Certain assets — retirement accounts, life insurance, annuities, and payable-on-death accounts — pass directly to the people you name on those accounts, regardless of what your will or trust says. An out-of-date designation can unintentionally override your plan.
Please review the beneficiary designation on each of the following: [list accounts]. For each, confirm that both the primary and contingent beneficiaries reflect your current wishes and coordinate with your estate plan. Before naming your trust as beneficiary of a retirement account, please contact us — the tax rules require careful handling.
Once you have reviewed and updated your designations, let us know so we can note it in your file. If you have any questions, we are glad to help.
Sincerely,
[Attorney Name]
Adapt the language to your jurisdiction and the client's specific assets, and confirm the retirement-account guidance against the current SECURE Act rules.
Generating it without re-keying
The review letter pulls from the same client data as the rest of the plan — the client's name, the accounts captured at intake, the trust details. With a single-entry data model, you draft the letter from that data without re-typing it, and it stays consistent with the documents you produced. ContractKit drafts client letters alongside the estate package from one plain-English brief and one data set; you review and personalize before sending. See the workflow checklist, where the review letter fits into the funding stage.
Frequently asked questions
Why do beneficiary designations override a will?
Assets with a beneficiary designation — retirement accounts, life insurance, payable-on-death and transfer-on-death accounts — pass by contract directly to the named beneficiary, outside probate and outside the will or trust. A perfectly drafted estate plan can be silently defeated by a stale beneficiary form naming an ex-spouse or a deceased relative.
What is a beneficiary designation review letter?
It is a client communication that explains why designations matter, lists the accounts to check, and instructs the client to confirm or update each designation to coordinate with the estate plan. It closes the most common gap between a beautifully drafted plan and what actually happens at death, and it documents that the attorney advised the client to act.
Should retirement accounts name the trust as beneficiary?
Sometimes, but not by default. Naming a trust as beneficiary of a retirement account interacts with the post-SECURE Act distribution rules and can accelerate taxable distributions if the trust is not a qualifying see-through trust. This is a fact-specific decision — the review letter flags it, and the attorney advises based on the client’s situation.
Can I generate the review letter automatically?
ContractKit drafts client letters and estate documents from a plain-English brief using the same client data set, so a beneficiary designation review letter can pull the client’s name, the relevant accounts, and the plan details without re-keying. You review and personalize it before it goes out.
Draft client letters from the same data set
Try ContractKit free for 14 days — no credit card. Generate the review letter and the full estate package from one brief, then personalize and send.
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