You may not need to rewrite your will to change who inherits your assets.
But whether you do depends on a key distinction many households overlook, Harry Margolis, author of “Get Your Ducks in a Row,” said in a recent interview.
Two key factors are how the asset is titled and whether it passes through probate.
That distinction, Margolis said, can have real financial consequences, especially for retirement accounts, bank accounts, and estate plans that involve trusts.
Below is a transcript of that interview, edited for clarity and brevity.
Can you change beneficiaries without updating your will?
Robert Powell: Is it possible to change your beneficiaries without rewriting your will? Here to talk with us about that is Harry Margolis. He is the author of “Get Your Ducks in a Row.” Harry, welcome.
Harry Margolis: It’s good talking to you, Bob.
Robert Powell: It’s always a pleasure, because you always have the answer to these common questions.
When do beneficiary designations override your will?
Harry Margolis: It depends to some extent on what you mean by “beneficiary.” For many assets, you have a beneficiary designation that is totally outside of your will. For example, retirement accounts, investment accounts, and bank accounts.
Your will does not affect those assets because it only governs probate property, meaning assets that pass through probate. When you name a beneficiary on an account, that asset does not go through probate. So you can change that beneficiary without changing your will, because they are unrelated.
Where confusion can arise
The problem is when your will says one thing and your beneficiary designation says something else. Legally, the beneficiary designation controls. But that mismatch can create confusion about your intent.
For instance, if your will names one person and a beneficiary designation names someone else, and the will was created later, people may wonder whether you forgot to update the designation. That can lead to disputes.
So yes, legally you do not have to change your will, but you may want to ensure everything is consistent or clearly explained.
Beneficiaries vs. heirs and the role of trusts
When people say “beneficiary,” they might also mean beneficiaries of a trust or individuals named in a will. Technically, those who inherit under a will are called heirs.
If you are talking about beneficiaries of a trust, then you would need to amend the trust to make changes. Often, when someone has both a revocable trust and a will, the will simply directs that all assets go into the trust. The trust then determines who ultimately receives the assets.
That structure allows you to make changes by amending the trust, which is often simpler than changing a will.
When you must change the will
Robert Powell: Let me give you an example. Suppose I have an antique typewriter collection that I leave to my son in my will. Later, I decide my daughter should receive it instead. I would have to change the will, correct?
Harry Margolis: Yes. In that case, you would need to change the will because those assets pass through probate.
You could do that with an amendment, called a codicil, or by creating a new will. In most cases, we prepare a new will. It’s often just as easy, especially if you work with the same attorney who has your original document.
Another reason to create a new will is privacy. A codicil creates a record of changes. With a new will, only the final version controls.
Key takeaway: Know what passes through probate
Robert Powell: So the key is understanding which assets pass through probate and which do not.
Harry Margolis: Exactly. Only probate assets are governed by your will. For everything else, you change the beneficiary designation directly.
Related: Who will care for your kids if you can’t?
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