Beneficiary designations: the part of your Texas plan people forget

What passes by beneficiary designation

Retirement accounts (IRAs, 401(k)s), life insurance, and accounts marked "payable on death" (POD) pass directly to the person named on the account — not through your will, and outside probate. Texas codifies multi-party and POD accounts in Tex. Est. Code ch. 113. For many people these are among their largest assets.

They override your will

This is the part that catches families off guard: if your will leaves everything to your spouse but your 401(k) still names a former partner, the 401(k) goes to the former partner. The beneficiary form wins. Your will cannot fix a stale designation.

The Texas wrinkle: community property

Texas has no spousal "elective share" — a surviving spouse is protected structurally instead, by owning half of the community property outright. That cuts the other way on designations: a community-funded account or policy is not entirely yours to give, and a spouse may have community-property rights in it regardless of the named beneficiary. Coordinating designations with the community/separate character of each asset is a distinctly Texas planning step.

Review after every life event, and name a backup

Marriage, divorce, a death, a new child — each is a reason to review every beneficiary designation you have, and always name a contingent (backup) beneficiary. A mismatch between your designations and your will is one of the most common and avoidable planning mistakes. EstateDraft’s review can help you spot gaps.

Frequently asked questions

Do beneficiary designations override a will in Texas?

Yes. Assets with a named beneficiary — like retirement accounts and life insurance — pass to that beneficiary regardless of what your will says.

Can I use POD accounts to leave my spouse nothing in Texas?

Texas has no elective share, but a spouse owns half of the community property outright — so a community-funded account is not entirely yours to give away, whatever the designation says. Specific situations need a licensed Texas attorney.

General information about Florida law, not legal advice.