You can name a beneficiary on a bank account by filling out a beneficiary designation form. This form allows you to specify who will receive the funds in your account after your death.
Here's a breakdown of the process:
1. Contact Your Bank
- Reach out to your bank or credit union.
- They will provide you with the necessary paperwork and instructions.
2. Complete the Beneficiary Designation Form
- The form will ask for the beneficiary's full legal name, date of birth, and relationship to you.
- You may also need to provide your Social Security number.
- Be sure to fill out the form accurately and completely.
3. Submit the Form to Your Bank
- Once you've completed the form, submit it to your bank.
- They will process the form and update your account records.
4. Review Your Beneficiary Designations Regularly
- It's important to review your beneficiary designations regularly to ensure they are still accurate.
- You may need to update them if your personal circumstances change, such as a marriage, divorce, or the birth of a child.
Important Considerations
- Joint Accounts: If you have a joint account with someone, the surviving joint account holder will automatically inherit the funds upon your death. You may not need to name a beneficiary in this case.
- Revocable vs. Irrevocable Accounts: A revocable account allows you to change the beneficiary designation at any time. An irrevocable account prohibits changes after you set it up.
Examples of Beneficiary Relationships
- Spouse
- Children
- Parents
- Siblings
- Friends
- Charities
Remember: Naming a beneficiary on your bank account is an important step in estate planning. It ensures that your assets are distributed according to your wishes after your death.
