2. Name All Your Accounts' Beneficiaries
Having a named beneficiary for retirement and investment accounts and insurance policies is as important as writing a will. Assets in these accounts pass directly to the beneficiaries you've designated with your account custodian, trustee, or plan administrator—and generally supersede any instructions in your will.
It’s not hard to name—or update—beneficiaries on financial accounts. Most financial service providers let you do it online. Naming beneficiaries on all accounts can help avoid legal complications in the event of a death.
Retirement accounts beneficiaries
You can name beneficiaries on your retirement accounts, such as 401(k) accounts and IRAs. If you are married, keep in mind that some employer-sponsored retirement plans automatically designate your spouse as the beneficiary unless you name another beneficiary and your spouse has consented in writing. Check with your company.
Nonretirement accounts beneficiaries
Designating beneficiaries on a nonretirement bank account or brokerage account may establish a "transfer-on-death" (TOD) registration for the account. It allows ownership of the account to be transferred to a designated beneficiary upon your death.
Insurance policies beneficiaries
It's a good idea to check your insurance beneficiary designations. Your life insurance policies may not be something you think about often but it’s important that your beneficiaries reflect your current wishes. For example, if you forget to change the beneficiary after a big life event like a marriage or a divorce, insurance proceeds could go to the wrong person if anything were to happen to you.
The third topic is here.