Learn more about the importance of having a beneficiary for your bank account.
A beneficiary is a person you choose to receive money, benefits, or other property upon your death. Many people don’t realize they can choose a beneficiary for their savings or checking accounts. At most banks and financial institutions, accounts have a “TOD” (Transfer on Death) or “POD” (Payment on Death) designation.
You can also name multiple people to receive the money in your account upon your death, for example, 50% share to each of your two adult children.
Naming a beneficiary for your bank account will ensure that it will avoid probate, as well as provide a smooth transfer of the funds in the account to your loved ones. Adding or naming a beneficiary to your bank account should be a fairly quick and painless process of filling out a form provided by the bank.