What happens if my beneficiary designations conflict with my will?

What the Law Says

Federal law—particularly the Employee Retirement Income Security Act (ERISA)—establishes that beneficiary designations on qualified retirement plans take precedence over wills and other estate documents.

Under federal law, assets held in ERISA-covered retirement plans (like 401(k)s and pensions) are not part of your probate estate. Instead, they pass directly to the named beneficiary, regardless of what your will says.

This rule exists to ensure predictability and efficiency in distributing plan benefits—and to protect participants’ intent as formally expressed on official plan forms.

State probate law cannot override these federal rules for ERISA plans, making beneficiary designations legally binding and controlling.

Statutory Text

The Congress finds that the growth of employee benefit plans has been rapid, and that approximately 50 million workers and their dependents are covered by such plans; that the continued well-being and security of millions of employees and their dependents are dependent upon the financial soundness and stability of employee benefit plans; and that the lack of adequate protection for beneficiaries of employee benefit plans has resulted in substantial losses to such beneficiaries.

— 29 U.S.C. § 1001 — Congressional findings and declaration of policy

What to Do

Sources