How to Change Beneficiaries on Accounts After Losing Your Spouse

After a spouse passes away, most surviving partners are surprised to learn how many financial accounts list a beneficiary — the person who receives the money if the account holder dies. Bank accounts, certificates of deposit, retirement accounts like 401(k)s and IRAs, life insurance policies, pension plans, annuities, brokerage accounts, and even some savings bonds all carry a named beneficiary. In most cases the surviving spouse was named as the primary beneficiary, which means money may now be moving to you. But because your spouse is no longer alive, those accounts now need a new beneficiary named on them in case something happens to you. If you do not update the beneficiaries, the money in those accounts may end up going to someone you did not intend or get tied up in a long court process called probate.

Updating beneficiaries is one of the most important pieces of paperwork to handle in the months after losing a spouse. But it does not all need to happen at once. Take the next six months and work through the accounts one at a time. Many widows and widowers find it helpful to set aside one afternoon a week as their "paperwork day," tackle one or two accounts during that afternoon, then put the folder away and rest. Spreading the work out keeps it manageable and gives you time to think clearly about who you want to name as new beneficiaries.

The choices for new beneficiaries are usually children, grandchildren, siblings, close friends, a charity, or a trust. Many people name two or three primary beneficiaries who share the account equally (such as three adult children, each receiving one-third). You can also name contingent beneficiaries, who receive the money only if all primary beneficiaries have died before you. Most accounts allow specific percentages. So you might give 50 percent to one child, 25 percent to another, and 25 percent split among grandchildren. Take a quiet evening to think about your wishes before you start filling out forms.

This guide walks through how to find every account that needs updating, what forms each financial company requires, how to confirm the changes went through, and the records you should keep. A meeting with an estate attorney or your tax preparer can be helpful if your situation is complex (large estate, blended family, special needs heirs), but most widows and widowers can handle the routine beneficiary updates on their own with the help of customer service representatives at each financial company.