Phase 1 · Secure the FoundationStep 12~2 min read

Beneficiary Sweep

A form overrides your will

About 20 minutes, free, and it fixes the most preventable estate-planning mistake there is.

Your goal Verified beneficiaries on 100% of your accounts, within 2 days.

What & why

A beneficiary form beats your will. Every time.

Retirement accounts, life insurance, and transfer-on-death bank accounts pay whoever is named on the form — not whoever is named in your will. People die with an ex-spouse still listed on a 401(k), and the ex-spouse gets the money.

~20 min

All this step takes, start to finish. No attorney needed — just log in to each account.

Recommended setup

Default designations

A primary and a contingent on every account

Without a contingent, the money can fall into probate if your primary isn't available.

Primary

Spouse or partner

Single: closest intended heir

Contingent

Adult children or next of kin

Minor kids: use a trust or custodial (UTMA) account

Never name

Your estate

Sends the money through probate

Never name

A minor directly

A court manages it until 18

Accounts to check: 401(k)/403(b) (including old ones from past jobs), Traditional and Roth IRAs, HSA, every life insurance policy, and any transfer-on-death (TOD/POD) bank or brokerage account.

Do it

Four moves in one sitting

List every account that carries a beneficiary.

Use the list above. Old 401(k)s are the most commonly forgotten — unclaimedretirementbenefits.com can help find them.

Usually under Settings or Profile. Confirm who's named and that percentages add to 100%.

Fix anything outdated or missing.

Replace ex-spouses, deceased people, or "my estate." Add a contingent wherever one is missing.

Make sure it matches your intentions.

Note what you want so your will (next step) tells the same story. Set a yearly reminder to re-check.

You're done when

Every account has the right names

Every account has a confirmed primary and contingent beneficiary — a living person or a trust, never your estate.

No ex-spouses or outdated names remain, and a yearly reminder is set to re-check.

Questions

Common questions & mistakes

My will says who gets everything — doesn't that cover it?

No. These accounts pay the named beneficiary directly and skip your will entirely. The forms must be updated at each institution.

Can I name my minor child?

Not directly — a court would manage the money until they turn 18. Name a trust or use a custodial (UTMA) account; you can set that up with Step 13.

What about naming "my estate"?

Avoid it. The money goes through probate — slow, public, and costly — losing the main benefit of the form.

My 401(k) requires spousal consent — what does that mean?

Federal law makes your spouse the default 401(k) beneficiary. Naming anyone else requires their signed (often notarized) waiver.

What are the common mistakes?

Forgetting old 401(k)s, leaving out a contingent, naming a minor directly, and never re-checking after marriage, divorce, or a new child.

Blueprint Wealth Education is for educational and entertainment purposes only and is not financial, tax, or legal advice. See our full Disclaimer for details.