A client came to me last year with a story that still haunts me.

Her father had done everything right. He had a will. It was properly drafted. It clearly stated that his estate should go to his three children equally.

But when he passed away, his ex-wife got his entire retirement account—over $400,000.

The children got nothing from what was their father's biggest asset.

How did this happen?

Here's what most people don't realize: Beneficiary designations on retirement accounts, life insurance, and bank accounts OVERRIDE your will.

It doesn't matter what your will says. The beneficiary form wins. Every time.

In this case, the father had updated his will after his divorce. But he never updated the beneficiary form on his 401(k). It still listed his ex-wife from 15 years earlier.

The result? The ex-wife legally received the entire account. The children had no recourse.

I see some version of this story every month:

The "set it and forget it" problem: You fill out a beneficiary form when you start a new job at 25. Twenty years later, you've been married, had kids, maybe gotten divorced—but that form still lists your college girlfriend.

The "I assumed it would match my will" mistake: Many people think their will controls everything. It doesn't. Beneficiary designations are a separate legal mechanism.

The "I didn't know I had to update it" oversight: After major life events—marriage, divorce, birth of a child—people update their wills but forget about their 401(k)s, IRAs, and life insurance policies.

More than you might think:

For many families, these accounts represent the majority of their wealth—often more than their house.

Here's your action plan for this week:

Step 1: Make a list of every account that might have a beneficiary designation (use the list above as a starting point).

Step 2: Log into each account and check who's currently listed as beneficiary. Yes, actually log in and look. Don't guess.

Step 3: For each account, ask yourself: "If I died tomorrow, is this the person I want to receive this money?" If not, update it.

Step 4: Name both a primary AND a contingent (backup) beneficiary. If your primary beneficiary dies before you, you don't want the account going through probate.

Step 5: Keep a record of your beneficiary designations somewhere your spouse or executor can find it.

"Should I name my trust as beneficiary?"
Maybe. There are good reasons to do this, but also potential tax consequences. This is worth a conversation with an estate planning attorney.

"What if I want my kids to inherit but they're minors?"
Naming minor children directly as beneficiaries creates complications. Consider naming a trust or a custodian under UTMA.

"My spouse is already listed. Am I good?"
Probably, but also name a contingent beneficiary in case something happens to both of you. And make sure your spouse's designations match your overall estate plan.

Your will is important. But if you haven't reviewed your beneficiary designations recently, you might have a $400,000 problem you don't even know about.

Take 15 minutes this week. Log into your accounts. Check your beneficiaries. It's one of the highest-impact things you can do for your family.

And if you find something that needs updating and you're not sure how to handle it, just reply to this email. I'm happy to point you in the right direction.

Zach HunsingerHunsinger Law Group, LLCServing families in Missouri and Illinois