In the event of a conflict between the designation provided in a will or trust and the instructions provided in a trust, beneficiary designations prevail. When the owner passes away, the beneficiary designation determines how the asset is distributed.

Beneficiary designations for financial accounts, including life insurance policies, retirement plans, or payable-on-death accounts, typically supersede those given in a will or trust. These designations are considered contractual agreements with the financial institution or plan administrator, which is why this happens.

For instance, if a person's will states that their life insurance benefits should go to their sibling but the policy names a friend as the beneficiary, the friend would receive the benefits. To ensure that beneficiary designations align with overall estate planning goals, it is crucial to review and update them regularly.

What is the role of probate process?

• The legal procedure known as probate validates the will of a deceased person, pays any debts, and distributes assets to the designated beneficiaries.
• The beneficiary may not be the children of the deceased person. Moreover, children are not prioritized over other legal proceedings.
• In a will or trust, the wishes of the deceased are conveyed. A will that was filed and accepted has authority, but there is a better choice.