All Of Us Need A Beneficiary Bank Account – Here Is Why
More often than not, we give lesser attention to bank accounts. Of course, we use it to save, deposit, and transact money. But bank accounts are not merely sources of collecting and transacting money. There are technical connotations to it as well. One of them is naming your bank account a beneficiary. What does that mean, you ask? Well, a beneficiary bank account allows you to transfer the ownership of the account holder after he dies. For example, if someone dies and he had a bank account with no beneficiary, the ownership can not be transferred to the heirs of the cardholder. On the other hand, if the deceased cardholder had a beneficiary bank account, the immediate heirs of the cardholder can get ownership of the card.
Suppose you have an x amount of savings in your bank account. Your account is non-beneficiary. What do you think will happen if you die? Will your kids have access to your bank account after your demise? No, that is not the case. If your bank account is not named a beneficiary, none of your heirs can have access to your bank account. As a result, your heirs will lose your life savings.
Think about it: Who do you work for? What is one thing that comes to your mind as you increase your savings? You bet! The core objective of savings is living a smooth lifestyle and seeking a secure future for your kids. How unfortunate would that be if you lose your life savings just because of a slight carelessness?
Now, let’s go ahead and see what beneficiary means and why it is important:
What Does A Beneficiary Account Mean?
In simple words, a beneficiary is someone who chose to take control of your assets when you die. A beneficiary can be either your kids, extended grandkids, or any other blood relation. Secured in written documents, a beneficiary takes responsibility for your assets when you are not around.
So, you select someone to take control of your bank account (s) when you die. Practically speaking, your beneficiary can either take control of your entire savings. Or, they can split them in half.
Depending on the nature of your bank account, you can name either one or multiple beneficiaries at the same time. After the demise of the cardholder, the beneficiaries will go through court proceedings. Based on the final remarks, your beneficiaries can take control of your bank account. This means that your bank account can not be transferred to your heir by default. Instead, you will have to follow legal proceedings to come up with the transfer of ownership.
Thus, it is extremely important to make someone your beneficiary. At any point, if things turn south, the life of your kids will be up and running.
More in Top Bank Accounts
The World’s Richest Celebrity Couples
Love and fame are not mutually exclusive, and when the two worlds collide, they create a magnetic force of success and...October 3, 2023
Why Mutual Fund Taxes Can Eat Into Your Earnings
Investing in mutual funds has long been a favoured avenue for individuals seeking to grow their wealth. Offering diversification, professional management,...September 28, 2023
Key Takeaways From David Rubinstein’s “How To Invest: Masters On The Craft”
When it comes to investing, everyone wants to learn from the best. David Rubinstein’s “How to Invest: Masters On The Craft”...September 22, 2023
U.S. Credit Card Debt Surpasses $1 Trillion
On the heels of a global pandemic, people are turning to their credit cards more than ever before to make ends...September 15, 2023
Ashton Kutcher’s Journey to Entrepreneurship
When you hear the name Ashton Kutcher, the image of a charismatic actor known for his roles in Hollywood comedies and...September 5, 2023
Financial Don’ts: What NOT to Do With Your Money
We all want to manage our money properly, but sometimes, we can make mistakes that may lead to financial problems. The...September 2, 2023
The Future of Chatbot Technology
Chatbots have become increasingly popular and are poised to revolutionize communication with businesses and organizations. These bots offer swift and efficient...August 27, 2023
Famous Businessmen Who Moonlight as Actors
Life is full of surprises and challenges. One is the intersection of two seemingly unrelated worlds: business and showbiz. Yes, you...August 2, 2023
The Rise of Digital Currency
Digital currency, also known as cryptocurrency, has emerged as a revolutionary currency in the digital age. It is a decentralized form...July 28, 2023