Where current not updating records
A similar dilemma arises if some children are named as beneficiaries but the document isn't updated to include those who were born after the initial designation.
To prevent these situations, you should update your beneficiary designation immediately after you experience a change in family status and review it periodically so they never become outdated or incorrect.
In other states, the default provision of the IRA plan determines the beneficiary if one is not designated by the plan holder.
Your retirement accounts are not part of your estate and generally not governed by the provisions of your will, so it is important to keep these retirement documents updated.
There have been numerous cases of retirement account owners who have been divorced and remarried but have neglected to update their beneficiary designations accordingly.
Default Beneficiaries If you fail to document your beneficiary designation, your beneficiary may be determined by federal or state law or by the plan document that governs your retirement accounts.
For qualified plans such as profit-sharing plans, 401(k)s and money purchase pension plans, federal regulations automatically designate the spouse of the account owner as the beneficiary.This determination is critical, especially if there are children from a previous marriage: Will all the children be included?