It is more than likely that you own bank accounts that can sidestep the probate process. Collectively known as payable on death accounts, these may consist of your personal checking, savings, certificate of deposit, and money market accounts. Importantly, this is so long as you take measures to name beneficiaries for these accounts during your lifetime. If you have done this already, then you should read on to discover whether you can modify your beneficiary designations for your bank accounts later on, and how one of the seasoned St. Louis estate lawyers at Stobie Family Law Group can guide you through making these changes.
Can I add or remove a beneficiary designation from my bank account?
First of all, to make your initial beneficiary designation, you must contact the financial institution that holds the account and request the required form. Within this form, you may have to provide the intended beneficiary’s full legal name, permanent address, date of birth, Social Security number, and other personal information. Also, you must confirm whether the specific institution wants the form to be notarized and signed by witnesses before you file it.
Once that is all said and done, most banks generally allow account holders to add or remove beneficiary designations at any point. Of course, this is so long as you are still considered to possess the mental capacity to make such a change. We recommend reviewing and updating these assignments after any major life event you undergo, such as getting married, getting divorced, welcoming a child to your family, mourning the death of an original beneficiary, etc.
Why should I consider naming multiple beneficiaries to one account?
It is rather likely that you can name multiple beneficiaries to one bank account. For this, you may explicitly assign percentages to each individual in your beneficiary designation form (i.e., one person receives 60 percent, the second earns 30 percent, and the third gets 10 percent). Otherwise, the financial institution may revert to its default judgment to split these funds equally, which could unnecessarily trigger probate or simply misalign with your wishes.
The main reason why you should consider designating several recipients is in the event the primary beneficiary predeceases you. Otherwise, again, this bank account may be taken to the Missouri probate court. So, when you are filling out the required form, you may be asked to select between “per stirpes” or “per capita” methods for allocating funds when the account’s designated beneficiary passes.
For one, per stirpes means that the deceased beneficiary’s share will go to their children. Secondly, per capita means their portion will be split equally among the other surviving named beneficiaries. You may choose the former if you wish to keep these funds within the same family line (i.e., each of your children’s family branches gets a fair share). But the latter may be a simpler solution to this dilemma (but it may unintentionally exclude some of your grandchildren).
You could try to do this alone, but you do not have to. To minimize the risk of any errors, no matter how minimal or critical, you can lean on one of the St. Louis estate lawyers from Stobie Family Law Group. We would love to work with you.
