Beneficiary Designation Letter
Letter to update or correct beneficiary designations on retirement accounts, life insurance, and payable-on-death accounts.
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May 7, 2026
Margaret L. Hutchinson
2418 Riverbend Lane, Charleston, SC 29412
SSN (last 4): XXX-XX-1234
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
Fidelity Investments — Workplace Investing
Fidelity Investments
Workplace Investing
P.O. Box 770003
Cincinnati, OH 45277-0003
Re: Change of Beneficiary Designation
Account Type: 401(k) Retirement Plan
Account / Policy #: 401K-X-7842913
Account Holder: Margaret L. Hutchinson
Employer / Plan Sponsor: Charleston Medical Center
To Beneficiary Services / Plan Administrator:
I, Margaret L. Hutchinson, hereby submit this letter to update the beneficiary designation on my above-referenced account. This letter, together with the institution's official Beneficiary Designation Form (attached, completed, and signed), constitutes my formal change of beneficiary.
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ACCOUNT IDENTIFICATION
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Account holder name: Margaret L. Hutchinson
Date of birth: August 12, 1955
Address: 2418 Riverbend Lane, Charleston, SC 29412
SSN (last 4): XXX-XX-1234
Account / policy #: 401K-X-7842913
Account type: 401(k) Retirement Plan
Employer / sponsor: Charleston Medical Center
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NEW BENEFICIARY DESIGNATION
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This designation REPLACES (or modifies, as specified) any prior beneficiary designation on the above account. The new designation is:
PRIMARY BENEFICIARIES (collectively 100%):
1. David S. Hutchinson (son), DOB 1982-06-04, address 4801 Magnolia Drive, Charleston SC 29407 — 50%
2. Sarah H. Mitchell (daughter), DOB 1985-11-12, address 7204 Tradd Street, Charleston SC 29401 — 50%
CONTINGENT BENEFICIARIES (if both primary beneficiaries predecease):
1. The Patricia A. Wellington Revocable Living Trust dated April 15, 2018 — 100% per stirpes for the descendants of David and Sarah.
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PRIOR DESIGNATION (FOR REFERENCE — TO BE SUPERSEDED)
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Robert J. Wellington (former husband, divorced 2019) — 100%. This designation should be REPLACED. Do not honor any prior designation in favor of Robert J. Wellington under any circumstances.
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SPOUSAL CONSENT
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I have no current spouse, or this account type does not require spousal consent. (If incorrect, please notify me immediately.)
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INSTRUCTIONS AND CONFIRMATION REQUEST
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Please:
1. Process this beneficiary change as expeditiously as possible.
2. Provide written confirmation within 14 days, including:
(a) The effective date of the new designation;
(b) Confirmation that prior designations have been superseded;
(c) Account number and the names/percentages of new beneficiaries.
3. Send confirmation to my address on file (above) AND to my email at the address provided in Section 4.
4. If any procedural step is incomplete (e.g., missing form, missing signature, missing spousal consent), notify me by phone within 5 business days so I can correct.
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NOTES ON DESIGNATION
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- "Per stirpes" means that if a beneficiary predeceases me, that beneficiary's share passes to their descendants. Without "per stirpes," the share lapses or passes to other named beneficiaries.
- Trust as beneficiary: when a trust is named, the trustee receives the funds. Distribution to individuals follows the trust's terms. For retirement accounts (IRA, 401k), naming a trust as beneficiary has tax consequences — the SECURE Act (2019) and SECURE 2.0 Act (2022) significantly changed required distribution rules; consult a CPA before naming a trust as IRA beneficiary.
- Charitable beneficiaries: name the exact legal name of the charity and its EIN where possible.
- Minor beneficiaries: minors cannot legally hold retirement accounts; designate a custodian under the state Uniform Transfers to Minors Act (UTMA) or a trust for minor beneficiaries.
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Thank you for your prompt attention to this important matter.
Sincerely,
_______________________________
Margaret L. Hutchinson
May 7, 2026
Enclosures:
- Institution's official Beneficiary Designation Form (completed and signed)
- Spousal Consent Form (notarized) — Exhibit A
- Copy of valid government-issued ID (driver's license or passport)
- Copy of recent account statement (for verification)
cc: Account holder's file
Healthcare agent / personal representative
Estate-planning attorney (if applicable)
About this template
Beneficiary designations are the SECOND most important document in estate planning, after the will or trust — and yet they're the most-overlooked. The reason: beneficiary designations OVERRIDE the will. If your will leaves your retirement account to your children but your retirement account beneficiary form names your former spouse, the former spouse gets the account, regardless of what the will says. This is a near-universal cause of estate-planning disasters: divorces, remarriages, deaths of named beneficiaries, and life changes routinely leave outdated designations in place. The most-litigated scenarios: (1) Former spouse remains beneficiary after divorce — most states have automatic-revocation statutes that void designations to a former spouse on divorce, but federal law (ERISA) preempts state law for 401(k)/pension/group life insurance, so the former spouse may still receive the funds despite state automatic revocation. The Supreme Court confirmed this in Egelhoff v. Egelhoff (2001) and Kennedy v. DuPont (2009). The fix: explicitly update the beneficiary designation after divorce; do not rely on automatic revocation. (2) Predeceased beneficiary — if the named beneficiary dies before the account holder and there's no contingent beneficiary, the funds pass to the estate (subjecting them to probate). The fix: name contingent beneficiaries; consider using "per stirpes" language for descendants. (3) Trust as beneficiary — naming a trust as beneficiary is sometimes correct (for minor children, blended families, special-needs beneficiaries) but has significant retirement-account tax consequences. The SECURE Act (2019) and SECURE 2.0 Act (2022) limited "stretch IRA" benefits and require most non-spouse beneficiaries to fully distribute inherited retirement accounts within 10 years. Naming a trust as beneficiary may compress the distribution window further. Consult a CPA. (4) Minor beneficiaries — a minor cannot legally hold a retirement account; without a UTMA custodian or trust, courts must appoint a guardian, which is slow and expensive. (5) Charitable beneficiaries — naming a charity is highly tax-efficient (no income tax on retirement-account distribution to a charity), but the charity's exact legal name and EIN must match — typos can void the designation. Spousal consent: ERISA-governed plans (401(k), pension, group life insurance) REQUIRE the spouse's notarized consent if the beneficiary is anyone other than the spouse. This is federal law — no state-law exception. Many account holders forget; the institution will eventually catch the omission, but if the account holder dies in the interim, the designation may revert to the spouse by default. State community-property law adds another layer: in community-property states (AZ, CA, ID, LA, NV, NM, TX, WA, WI), the spouse may have a community-property interest in retirement accounts even without ERISA, and the beneficiary designation can be challenged if the spouse did not consent. Practical updates: every 3-5 years OR after any major life event (marriage, divorce, birth, death of named beneficiary, retirement change), audit ALL beneficiary designations: 401(k), IRA, pension, life insurance, POD bank accounts, TOD brokerage, 529 plans, HSA, annuity. Many people have 10+ accounts each with a beneficiary; they're each independent and each requires separate updating. Use this letter to formalize each change.
When to use it
- After divorce — explicitly remove former spouse (do not rely on state automatic revocation, which doesn't apply to ERISA plans).
- After remarriage — update to reflect new family structure.
- After birth of children, grandchildren, or stepchildren.
- After death of named beneficiary — update primary and contingent designations.
- When establishing a living trust — change designations to trust where appropriate (with CPA guidance for retirement accounts).
- Periodic audit: every 3-5 years, review ALL accounts.
What to include
- Account holder identification (name, DOB, address, last 4 SSN).
- Account / policy number and account type.
- Plan sponsor / employer (for ERISA plans).
- New / updated beneficiary designation (primary + contingent).
- Spousal consent (notarized) for ERISA plans where spouse is not 100% primary.
- Reference to prior designation being superseded.
- Confirmation request and contact info.