If you don’t know, then you should check TODAY!  In fact, after reading this information post, you  should contact your bank and find out.

Check the “Pay on Death” Designation on Your Bank Accounts

Just when your family is likely to need that money the most, they may not have access to you.  Why?  You did not specify who should receive the money upon you death.  In other words, you did not designate a “Pay on Death” beneficiary on your bank accounts; checking, savings, money market, etc.

“Pay on Death” is a designation used by banks that allow you to name who should get the money in your bank account(s) when you die.  THIS IS HUGE, because when you die, all that person needs to do it take a copy of your death certificate, along with their identification (example: driver license, state issued id, …), to the bank, and the bank will give them the money in your bank accounts.  No probate, no papers to file with the probate court, no lawyers needed.

Without a pay on death beneficiary, the money is held in your bank account(s) until someone goes to probate court, open a probate case, and ask the judge to decide who should get that money.  With or without a Will, probate takes time and drain your assets.

Naming Your “Pay on Death” Beneficiary

You can name anyone you like to receive the money in your bank account(s).

(1) You can name one or more people per account

(2) You can name different people on different accounts

(3) You can name a minor (person under 18 years of age).  However if the account has more than a few thousand dollars, you should arrange for an adult to manage the money; in case the person is still a minor at your death.  If you do not name an adult to manage the money for the minor, one of three things will happen:

– If state law allows it, the money can simply be given to the minor’s parents, who will hold the money for the benefit of the child.

– If the amount is relatively small—generally, a few thousand dollars, depending on state law and bank custom—the bank will probably turn it over to the child or the child’s parents.

– If theamount is larger, the parents will probably have to go to court and ask to be appointed guardians of the money. (If the parents aren’t alive, a guardian will probably already have been appointed and supervised by the court.)

What to Do at the Bank

Contact your bank and ask them if your account(s) has a pay on death beneficiary listed.  If the bank says that you do not have anyone listed, then let the bank know that you want to add a pay on death beneficiary and to send you the forms necessary to add the person(s).

You may have to go into the bank to name your pay on death beneficiary; whereas the bank will need to verify your identify.  Also, you will need the name, and likely the social security number and address of the person(s) that you will be naming as beneficiaries.

Is There a Cost to Add a “Pay on Death” Beneficiary

No.  You simply fill out the banks forms.

Do This Today

Doing this helps your family.  There is no need for someone else to decide who should get the money in your bank accounts.  And, should your family need money for your funeral, burial and other expenses, they will have immediate access to the money in your bank account(s).

Tell Others

Discuss this with your family and friends, so they can have things in place for their family.