The legal document naming who receives assets from an account upon your death.
A beneficiary designation is a form you complete when opening retirement accounts, life insurance policies, or investment accounts, naming who will receive the assets if you die. Beneficiary designations override your will, allowing direct transfer of assets outside probate. You can name primary beneficiaries and contingent (secondary) beneficiaries. It's crucial to update beneficiary designations after major life events (marriage, divorce, birth of children) to ensure assets go where you want. Forgetting to update beneficiary designations after marriage is a common mistake that can result in assets going to an ex-spouse.