The Inheritance Mistake That Could Cost Your Heirs Thousands

August 05, 2025

Every federal employee builds their TSP with care.

But most make a costly mistake that could tie up their savings in court—and leave their loved ones scrambling for answers:

They assume their will controls who inherits their TSP.

Spoiler: It doesn’t.

The Paperwork Trap That Trips Up Thousands

Most federal employees don’t realize that their TSP beneficiary form overrides their will.

So, if that form is missing or outdated, your account:

  • Could go through probate (delaying access by months or more),

  • Might end up with the wrong person (even an ex-spouse),

  • And could trigger massive, unnecessary taxes for your heirs.

This happens more than you’d think…

Surviving spouses unable to access retirement funds. Adult children discovering zero documentation. And families faced with tax bills in the tens of thousands—all because of a form no one updated.

✅ The 5-Step Legacy Checklist

You can protect your TSP and your loved ones in under 15 minutes:

  1. Log into tsp.gov → Review and confirm your beneficiaries.

  2. Do the same for your IRAs, FEGLI, and life insurance.

  3. Add both primary and contingent beneficiaries.

  4. Create a simple “asset map” listing all accounts and where to find them.

  5. Store it somewhere safe—and make sure someone you trust knows where it is.

This isn’t just about paperwork. It’s about peace of mind.

A clean, updated TSP beneficiary form means:

  • No court battles

  • No probate

  • No unnecessary taxes

  • And a clear, direct handoff of your life’s savings

You’ve built a strong retirement. Now make sure it reaches the right hands.

Best,
—FWR