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
This Is What Inflation Means For Your Investments
Globally speaking, inflation is hitting new highs, and people are left to deal with high gas and food prices, and generally,...October 23, 2022
“This App Saves Lives:” An App That Launches Crowdfunding Campaign
The idea of raising crowdfunds is by no means novel. Rather, it has been around for decades. Since the evolution of the internet,...October 22, 2022
Three Simple Ways To Improve Your Chances Of Home Loan Approval
A home is one of the largest investments you may make in your lifetime, and if you’re in the market for...October 16, 2022
Here’s What Every Start-Up Owner Ought To Know About Crowdfunding
Regardless of the module and size of your business, you can collect a massive amount of capital through crowdfunding. This is especially...August 21, 2022
Outdated Money Advices That Millennials And Gen Zers Don’t Listen To
Being patient and working hard in your business or work life can help you become successful, but the truth is, you...August 16, 2022
Remember When Elon Musk Was No Longer Interested In Buying Twitter?
Elon Musk may have eventually bought Twitter in October 2022 for $44 billion but many of us might have forgotten the...August 8, 2022
3 Successful Tips To Help Freelancers With Their Finances
Working freelance can take many forms, from working regular hours for a single employer to having a flexible schedule that changes...July 31, 2022
Why Is The Debt-To-Income Ratio Important For A Home Equity Loan?
If you have some big expenses, getting a home equity loan is a good option to fund them. If you have...July 23, 2022
Types Of Investors For Startup Companies
Investors are unique players in the growth process of a business. The level and quality of their involvement can ultimately help...July 17, 2022