You write a will to make sure your property goes to the people you choose. But an old life insurance form might name someone else, even if your will says otherwise. The same issue can affect other assets you own.
Certain jointly owned homes, accounts with named beneficiaries and property held in a living trust follow different rules. Those rules may determine who receives these assets, regardless of what your will says.
1. A home you own with someone else
Your deed shows how you share ownership of a home. If you own it as joint tenants, the surviving owner gets your share when you die. This is the right of survivorship. Your will cannot give that share to someone else.
If you own the home as tenants in common, the other owner has no automatic right to your share. Your will may direct who inherits it instead.
2. Accounts with named beneficiaries
Life insurance policies and retirement accounts often let you name a beneficiary. This is the person you choose to receive the funds after your death. A valid beneficiary form usually controls the payout, even if your will names someone else.
Suppose your will divides your property between two children, but your life insurance names only one. The insurer ordinarily pays the child on the policy. Changing your will does not change that name. Some retirement plans also protect a spouse’s right to benefits.
3. Property you put in a trust
A living trust lets you set rules for property you transfer into it. You choose a trustee to manage those assets and pass them on after your death. The trustee generally follows the trust’s terms rather than your will.
But signing trust papers alone does not transfer your home into it. You typically use a new deed for that. If the house remains in your name, your will or another transfer rule might decide who receives it.
Check your other records
You could compare your deed and account forms with the names in your will. It may also help to confirm which assets your trust holds. This review, as part of your estate planning, gives you a chance to update old instructions before your family relies on them.