Why You Should Designate a Beneficiary on Your Bank Accounts
04 Dec Why You Need to Designate a Beneficiary for Your Bank Accounts
Posted at 11:11h
in Probate
Did You Know That You Can Designate A Beneficiary For Most Bank Accounts? Here’s why you need a beneficiary for your bank account, and how to set one up. Here’s why you need a beneficiary for your bank account, and how to set one up.
What Happens to Bank Accounts with No Beneficiary?
Without a beneficiary, your bank account will have to go through probate before your loved ones can gain access to the funds. This costly court process could take many months, or even years. When you name a beneficiary, they will automatically inherit the account upon your death. This transfer process is much faster and simpler than waiting for probate, and it allows your loved ones to access funds immediately.
If you don’t name a beneficiary and you don’t have a will, the court will distribute your assets according to the laws of intestate succession. You have no control over who inherits your property. It’s important to name a beneficiary if you want to give your money to a non-married partner or someone who is not related to you. In most cases, yes. If you have a joint account, the other account owner will only be able to access 50% of your funds. If you have a joint account with an unmarried partner or one of your children, they will only be able to access 50% of the funds. You can designate a beneficiary for your bank accounts in a variety of ways, depending on your financial institution. However, the process should be fairly straightforward. You’ll usually be asked to fill out a “
Payable On Death
“, which names the person who will inherit your funds after you die. You will be asked to fill out a “Payable on Death” form. When to Name a Trust as Your Beneficiary
In some cases, naming a trust as beneficiary may be a better option. Setting up a trust can be a good option if, for example, you want to provide financial support for minor children, or have more control over the handling of your assets. With a
living Trust you can specify how and when the funds will be distributed, and you can appoint trustees who will manage the funds according to your wishes. Ask an Estate Planning Expert for Help
Designating a beneficiary for your bank accounts is an easy way to secure your family’s financial future. This simple step will allow your loved ones to have immediate access to your bank accounts and avoid the lengthy probate procedure. Phelps LaClair can help you if you are ready to take the next step or need more estate planning advice. We’ll help you make informed decisions to protect those you love.
Contact us
today to schedule a free consultation at one of our Phoenix area locations.
Photo by
Jonathan Cooper
on
Unsplash used with permission under the creative Commons License for commercial use 12/3/24.
