Most families feel confident once they have a will or a trust in place and beneficiaries named on their retirement accounts. It seems like everything is covered. But in 2026, one of the most common and costly estate planning mistakes is assuming retirement accounts and the rest of an estate plan automatically work together.
Unfortunately, they often do not. If not carefully planned for, your retirement accounts may actually be one of the biggest threats to the plan you have worked so hard to build. Our Sandwich, IL estate planning and wealth preservation attorney explains.
Why Don’t Retirement Accounts Follow Your Will or Trust?
Retirement accounts like IRAs and 401(k)s do not pass through your will or your trust. They are governed by contract law and transfer directly according to your beneficiary designations. That means if your trust says one thing and your beneficiary designation says something different, the beneficiary designation is what must be followed.