Connecticut Beneficiary Designation Checklist: Accounts That Override Your Will

Your Connecticut will controls less than you think. Every account with a named beneficiary — life insurance, 401(k), IRA, payable-on-death bank accounts — transfers directly to that beneficiary at death. Your will never touches these assets. If your beneficiary designations conflict with your will, the designations win every time.

This is how ex-spouses inherit retirement accounts, estranged relatives receive life insurance payouts, and carefully written wills get overridden by a form signed fifteen years ago and forgotten.

The Accounts That Bypass Your Will

These assets transfer automatically to the named beneficiary, outside probate, regardless of what your will says:

• Life insurance policies — proceeds go to the named beneficiary
• Employer retirement plans (401k, 403b, pension) — governed by ERISA, not state law
• Individual retirement accounts (IRA, Roth IRA) — beneficiary designation controls
• Payable-on-death (POD) bank accounts — funds transfer immediately to the named person
• Transfer-on-death (TOD) brokerage accounts — investment accounts with a named beneficiary
• Annuities — contract beneficiary receives the death benefit
• Health savings accounts (HSA) — if a beneficiary is named, they receive the balance

In Connecticut, these non-probate assets also count toward the probate fee calculation under C.G.S. § 45a-107. The probate court assesses fees on the greatest of the gross estate values, which includes joint accounts, insurance, and retirement accounts — even though the court never actually processes them.

Common Beneficiary Mistakes in Connecticut

The ex-spouse problem. After a divorce, Connecticut law does not automatically revoke beneficiary designations on life insurance or retirement accounts. If you named your former spouse as beneficiary during the marriage and never updated the form, they inherit. Federal ERISA rules (which govern employer retirement plans) explicitly override any state divorce decree.

The deceased beneficiary. If your named beneficiary dies before you and you never updated the form, the asset typically goes to your estate — and then through probate under your will or Connecticut intestacy law. Naming contingent beneficiaries prevents this.

The minor child beneficiary. Naming a child under 18 as a direct beneficiary creates an immediate problem. Minors cannot legally receive assets in Connecticut. The probate court will appoint a conservator to manage the funds until the child turns 18, at which point they receive everything outright — no conditions, no restrictions.

The lump-sum 18-year-old. A testamentary trust in your will can hold assets for your children until specified ages (25, 30, or later). But if your life insurance lists your child directly as beneficiary, the trust is bypassed entirely. The fix: name your testamentary trust as contingent beneficiary so the insurance proceeds flow into the structured trust rather than directly to a teenager.

Your Beneficiary Audit Checklist

Go through each category and verify the primary and contingent beneficiary on every account:

Financial accounts:

• Every bank checking and savings account — check for POD designations
• Brokerage and investment accounts — check for TOD registrations
• Certificates of deposit

Retirement accounts:

• 401(k) or 403(b) from current employer
• 401(k) accounts from previous employers (often forgotten)
• Traditional and Roth IRAs
• Pension plans
• Deferred compensation plans

Insurance:

• Life insurance (individual and employer-provided group policies)
• Annuity contracts
• Accidental death and dismemberment (AD&D) policies

Other:

• Health savings account (HSA)
• College savings plans (529) — check successor owner designation
• Transfer on death deed for real property (available in Connecticut from October 2026)

How to Update Designations

Contact each financial institution directly. Most provide beneficiary change forms online. For employer retirement plans, go through your HR department or benefits portal.

Keep a master list of every account with the institution name, account number (last four digits), current primary beneficiary, and current contingent beneficiary. Store this with your estate planning documents and tell your executor where to find it.

Review your beneficiary designations after every major life event: marriage, divorce, birth of a child, death of a named beneficiary, or any significant change in your family situation.

The Connecticut Basic Estate Planning Kit includes a beneficiary audit worksheet that walks through every account type with Connecticut-specific notes on POD accounts, TOD deeds, and how non-probate assets interact with the state's probate fee calculation.

See more Connecticut guides →