You spent good money on a will or trust. So why do so many Miami families still watch assets land in the wrong hands? Usually it comes down to one overlooked detail: beneficiary designations. Here are the questions we hear most often.
Do beneficiary designations really override my will?
Yes, and this surprises almost everyone. A life insurance policy, IRA, 401(k), annuity, or payable-on-death bank account passes by contract directly to the person named on the form. It does not flow through your will, and it generally avoids Florida probate (the formal and summary administration processes under Chapters 731-735). If your will leaves everything to your spouse but your old 401(k) still names your sister, your sister wins. The form controls.
What happens if I never named anyone?
When a designation is blank, outdated, or the named person has died, the asset often defaults to your estate. That pulls it back into Florida probate, which is exactly what the account was designed to avoid. In Miami-Dade, that can mean months of court administration and attorney involvement for money that could have transferred in days. A named, living beneficiary keeps things simple.
I got divorced in Florida. Is my ex automatically removed?
For many assets, Florida law (section 732.703) voids a designation naming a former spouse once a marriage is dissolved, treating them as if they predeceased you. But this protection does not reach everything. Federal law governs many employer retirement plans through ERISA, and that can keep an ex-spouse in place regardless of your divorce decree. The only safe move is to update every form yourself rather than trusting the law to clean up after you.
Should I just name my minor kids?
Be careful here. Florida will not hand a large sum directly to a minor. If a child is named outright and you pass away, a court may need to appoint a guardian of the property to manage the funds until age 18, then release the full balance to an 18-year-old. Many Miami parents instead name a revocable trust (under Chapter 736) as beneficiary, so a trustee can manage and distribute the money on the schedule the parents chose.
Does Florida tax what my beneficiaries receive?
Florida has no state estate tax and no inheritance tax, so your beneficiaries are not taxed by the state on what they receive. That said, inherited retirement accounts can carry federal income tax consequences for the person who receives them, which is a reason to coordinate designations with your overall plan rather than guessing.
What about my homestead and these forms?
Your Miami home is treated separately. Florida’s constitutional homestead protections (Article X, section 4) and restrictions on devise can limit how you leave your residence, especially if you have a spouse or minor child. A beneficiary form on a bank account does not change those homestead rules, so your home and your financial accounts need to be planned together.
How often should I review them?
Treat designations as living documents. Review them after any marriage, divorce, birth, death, or move to Florida, and at least every few years otherwise. Keep copies with your estate plan so your family is not guessing during a hard time.
A note for Miami families
Beneficiary designations are deceptively powerful, and a single stale form can unravel an otherwise solid plan. Florida law has its own rules on divorce, minors, homestead, and probate that do not always match other states. Before relying on these forms, speak with a licensed Florida estate planning attorney who can align every designation with your will, trust, and goals.