Why Adding a Beneficiary to Your Account Matters
Life is full of unexpected moments, and while no one likes to think about the future, taking a few simple steps today can make things much easier for the people you care about tomorrow. One of those steps is adding a beneficiary to your financial accounts.
It's quick, free, and can provide peace of mind for you and your loved ones.
What Is a Beneficiary?
A beneficiary is the person (or people) you choose to receive the funds in your account if something happens to you.
When you name a beneficiary, you're simply telling the credit union who should receive the money in your account after your passing. It doesn't give that person access to your account while you're living. They cannot make withdrawals, view your account, or make changes. You remain the sole owner and have complete control of your money.
Why Is It Important?
Without a beneficiary, the money in your account may become part of your estate. Depending on your situation, that could mean a longer legal process before your loved ones can access the funds.
Adding a beneficiary can help:
Make it easier for loved ones to receive funds.
Potentially reduce delays and paperwork.
Provide clarity about your wishes.
Give you peace of mind knowing you've planned ahead.
While naming a beneficiary doesn't replace a will or estate plan, it's an important part of making sure your financial accounts are handled according to your wishes.
Who Can You Name?
You can name almost anyone as a beneficiary, including:
A spouse or partner
A child or grandchild
Another family member
A trusted friend
A charity or organization
You may also be able to name multiple beneficiaries and specify how you want the funds divided.
What Is a Contingent Beneficiary?
You can also name a contingent beneficiary as a backup. If your primary beneficiary passes away before you, the contingent beneficiary would then be designated to receive the funds in your account.
Adding a contingent beneficiary provides an extra layer of planning and helps ensure you have another person designated to receive the funds if your primary beneficiary is no longer able to do so.
Can You Change Your Beneficiary?
Absolutely.
Life changes, and your beneficiary designation can change with it. Marriage, divorce, the birth of a child, or other major life events are all good times to review your accounts and make updates if needed.
How Do You Add a Beneficiary?
The process is usually simple.
Visit one of our branches or contact us, and we'll help you complete the necessary paperwork. In most cases, you'll just need to provide basic information about the person you'd like to name.
If you're unsure whether you already have a beneficiary on your account, we're happy to check for you.
A Small Step That Can Make a Big Difference
Adding a beneficiary only takes a few minutes, but it can save your loved ones time, stress, and uncertainty later.
If you've never named a beneficiary or it's been several years since you've reviewed your accounts, now is a great time to take another look. Planning ahead today can make tomorrow a little easier for the people who matter most.
Stop by your nearest Members Credit Union branch or give us a call. We're here to help you protect what matters and answer any questions you may have.