Adding beneficiaries to your checking and savings accounts is an important step in financial planning, especially for individuals with dependents or loved ones. By designating beneficiaries, you ensure that your assets are distributed according to your wishes upon your passing, streamlining the process and avoiding potential legal complications.
Understanding Beneficiaries
A beneficiary is an individual or entity that you designate to receive the assets in your account upon your death. This can be a spouse, child, other family member, or a charitable organization. By naming beneficiaries, you bypass the probate process, which can be time-consuming and costly.
How to Add Beneficiaries to Your Indiana Accounts
The process of adding beneficiaries to your Indiana accounts can vary slightly depending on your financial institution. However, the general steps are as follows:
Contact Your Financial Institution: Reach out to your bank or credit union to obtain the necessary forms. You can often find these forms on their website or request them in person.
Complete the Beneficiary Designation Form: Fill out the form accurately, providing the names, addresses, and Social Security numbers of your beneficiaries. You may also need to specify the percentage of your assets each beneficiary will receive.
Review and Sign the Form: Carefully review the form to ensure all information is correct. Sign and date the form in the presence of a witness.
Submit the Form: Return the completed form to your financial institution. You may be able to submit it in person, by mail, or through online banking.
Important Considerations
Multiple Beneficiaries: You can designate multiple beneficiaries for your account. Consider using percentages to divide the assets among them.
Per Stirpes vs. Per Capita: Understand the difference between these two distribution methods and choose the one that best aligns with your wishes. Generally, per sitrpes passes down to a person’s descendants if a beneficiary has predeceased. Per Capita is sharing equally between beneficiaries in a group, such as surviving children who only survive me.
Review Regularly: It’s important to review beneficiary designations periodically, especially after significant life events like marriage, divorce, or the birth of a child.
Consult with an Attorney: If you have complex financial situations or specific estate planning goals, consulting with an attorney can help ensure your wishes are carried out. Many attorneys provide sample beneficiary forms especially if they want payable to a trust in complicated circumstances.