A beneficiary designation on a retirement account — such as an IRA or 401(k) — allows those assets to pass directly to the named beneficiary upon the account holder’s death, bypassing probate entirely. The beneficiary then determines the timing and method of accessing the funds. Because retirement accounts typically sit outside a revocable living trust, keeping beneficiary designations current is one of the most important — and easily overlooked — steps in comprehensive estate planning after losing a spouse.