Maintaining your finances while you’re living is crucial, but having things in order for your spouse, children and loved ones after your death is just as important. You need to prepare by adding beneficiaries to your bank accounts. In the event of your death, your named beneficiaries are entitled to collect the money from your bank account.
Identifying a beneficiary will keep your loved ones at ease because they can make arrangements on your behalf and take care of any bills and business you may be leaving behind.
If you have not yet added Beneficiaries to your Share Account at Evergreen Park Schools Federal Credit Union, now is a good time to do so. And it only takes a little time to set your heirs up for success and peace of mind.
Just go to the Forms and Information Section of our website (bottom left side of the Home Page) and fill out a New Membership Application listing the name(s) of who you would like to add as a Beneficiary(s).
You should always consult a qualified attorney for specific questions about your estate plan or the probate process.
Reasons to Add a Beneficiary
* Simple Transition of Your Account
Listing your heirs makes it clear who inherits the account upon your death. If your beneficiaries are already assigned to your accounts, the assets will easily pass to them directly. If a beneficiary is not named, your heirs may have to go through probate (a legal process for settling an estate after someone dies.) This process can be lengthy and time consuming which makes designating a beneficiary extremely important.
*Allow Your Loved Ones to Quickly Receive the Funds
Failure to list a Beneficiary could mean your account goes to the deceased account holder’s estate instead of a person designated by you. This can drastically increase the time before an heir can inherit the account. The probate process for the estate can take months at a minimum.
*You Will Have Greater Control
If your account goes through the probate process, distribution of the assets is carried out in a specific order, either according to your will or state law if you died without a will. When you list beneficiaries, you have the control to put whomever you want and in the order you decide. You may not have that control if the distribution of the account gets defaulted to your estate.
*Less Cost to Your Beneficiary
By simply listing a beneficiary, your heirs can avoid having the account go through probate. Depending on your estate plan, the probate process can cost not only time but money as well.
*It Eases Stress for All
Taking care of this simple step can ease a heavy burden for your beneficiaries, so they’re not unravelling your finances while they are grieving. Once the beneficiary notifies us about the death of the Member, they are immediately entitled to access those funds. The beneficiary will need to provide a Death Certificate but that is much easier than what is required in probate court.
*A Life Change
After a significate life change, such as getting married or having a baby, updating/adding a beneficiary is even more important. No one likes to think about an unexpected death, especially immediately after such happy events, but it can happen, so it’s best to be prepared. Just set it up and put your mind at ease.
Lastly, you should review your beneficiaries every year to make any changes if needed. You can update your beneficiaries with the Credit Union by filling out a new Membership Application and returning it to the Credit Union. If you ever have any concerns or questions about this or anything, we are here to assist you.
This information is provided for informational purposes only regarding Share Accounts held at Evergreen Park Schools Federal Credit Union and not for the purpose of providing legal, tax, financial planning or investment advice. Evergreen Park Schools Federal Credit Union encourages you to consult a professional for advice applicable to your specific situation.
