Here are some of the more common beneficiary form mistakes and misconceptions:
Beneficiary-designation form is not signed and dated.
If there is a challenge to the designation or if there are multiple designations and it is impossible to determine which form is the most current.
Percentages do not add up.
Participant designates multiple primary beneficiaries and indicates a percentage allocation to each beneficiary but the total percentages do not equal 100%.
Participants believe that their wills override all beneficiary designations.
Beneficiary designations and the plan document determine who gets the money, not the will.
Participant does not update beneficiary designations to reflect life changes.
Life events such as birth, adoption, marriage, divorce, and death should trigger a review of beneficiary designations.
Participant changes the beneficiaries on life insurance, but not on the pension account (or vice versa.)
