Why Adding a Beneficiary to Your Account Matters
Why Adding a Beneficiary to Your Account Matters
Life is full of unexpected moments, and while it’s not always easy to think about the “what ifs,” planning ahead can make a big difference for the people you care about. One simple way to do that is by adding a beneficiary to your account.
What Is a Beneficiary?
A beneficiary is the person (or people) you choose to receive the funds in your account in the event of your passing. This can be a spouse, child, family member, or anyone you trust. Beneficiaries can be added to many types of accounts, including savings accounts, checking accounts, and certificates. If an account has a joint owner, the funds automatically belong to the surviving owner(s), and a beneficiary would only receive the funds if there is no joint owner on the account.
Why Is It Important?
Adding a beneficiary helps ensure your money goes directly to the people you intend, without unnecessary delays or complications.
Here’s why it matters:
- Avoids probate: When you name a beneficiary, the money can be paid directly to them without going through a lengthy court process.
- Faster access to funds: Your beneficiary can receive the funds more quickly when they may need them most.
- Clear instructions: Naming a beneficiary removes uncertainty and helps prevent disputes or confusion among loved ones.
- Peace of mind: You’ll know your wishes are documented and your loved ones are protected.
When Should You Review or Update Your Beneficiaries?
It’s a good idea to review your beneficiaries whenever you experience a major life change, such as:
- Marriage or divorce
- Birth or adoption of a child
- Loss of a loved one
- Changes in relationships or responsibilities
Even if nothing has changed, reviewing your beneficiary information every few years is a smart habit.
How Do I Add or Update a Beneficiary?
Adding or updating a beneficiary is usually quick and easy. Our team can help you review your accounts, answer questions, and make sure everything is set up the way you want.
A Small Step That Makes a Big Difference
Taking a few minutes to add or update a beneficiary is a simple step that can have a lasting impact. It’s one of the easiest ways to take care of your financial future and the people who matter most.
If you have questions or would like help reviewing your accounts, we’re always here to help.
