Do You Have Beneficiaries on All of Your Accounts?
If you die or become incapacitated, will people who need it have access to your accounts?
Types of accounts that can (and should!) have designated beneficiaries:
Bank accounts (if you have business bank accounts, it might be more tricky - as I recently learned for myself)
Life insurance
Social media accounts
Digital password managers
Retirement accounts and pensions
How to designate beneficiaries:
Bank accounts: Go to the bank with the name, social security number, and address of your beneficiary. For business accounts, you may need to have a signer listed on the account or have a specific power-of-attorney drafted solely for that purpose.
Life insurance: Contact your carrier and make sure that your beneficiary information is accurate and up-to-date.
Social media accounts: Many will allow you to designate a beneficiary under the settings section.
Digital password managers: These programs often allow you to designate a beneficiary to access the account immediately, or after a waiting period of your choosing. This will allow someone to get into any online accounts that may be necessary, which is particularly helpful if you are incapacitated and need someone to manage things for a brief period of time. (If you don’t already use a password manager, what are you waiting for?!)
Retirement accounts and pensions: contact the company or log in to their website and make sure your beneficiary information is accurate and up-to-date.
I am currently going through the process of making sure everything is up-to-date for myself. It feels a little tedious, but will save so much time and frustration for my loved ones should something happen to me. Sure, eventually they may be able to get access through the settling of my estate if I die, but that would be a more difficult process for them.
Do you have beneficiaries on all of your accounts, including your digital ones? If not, get started today. Your loved ones will be grateful you did.
