How Should I Style My Deposit Accounts for Estate Purposes?

Properly styling your deposit accounts helps your loved ones avoid the costs and delays of probate.

An important part of planning your estate involves ensuring that all deposit accounts avoid probate when you die. Probate is the process by which a judge oversees the transfer of your assets from you to your beneficiaries after you have passed away. Probate is costly and normally involves significant delays before the assets pass to your beneficiaries. In order to avoid probate, find out whether or not you have a revocable trust as a part of your estate plan, and style your deposit accounts accordingly.

Instructions

1. Go to a local branch of the bank in which you have placed your deposit accounts. Ask to see a bank manager about retitling your accounts for estate planning purposes.

2. Complete the forms required by the bank to re-title your accounts. If you have a revocable trust, name the trust as the owner of the account in this format: [Trustee Name], Trustee of the [Trust Name] dated [Trust Date]. For example, if the trustee is named John Doe and the trust is the John Doe Family Trust dated January 1, 2005, the bank form should show that "John Doe, Trustee of the John Doe Family Trust dated January 1, 2005" is now the owner of the bank account.

3. Complete a deposit account beneficiary designation form if you do not have a trust. This form specifies who will become the owner of your deposit accounts upon your death. The beneficiaries you name in the form will control the bank account after you pass away automatically without the need for any probate action.

Tips & Warnings

• Always consult with an attorney if you are unsure about whether you have styled your deposit accounts correctly for estate purposes.

References

• Family Wealth Advisory: Ways to Avoid Probate
• Legal Services for the Elderly: The Hidden Dangers of Joint Bank Accounts