Do checking accounts have beneficiaries?

Checking accounts can, and should, have beneficiaries. Naming one or more beneficiaries for your checking account, while it’s not a requirement, can provide a quicker and smoother transfer of funds to your loved ones after you pass away.

Let’s first define two key terms:

• Estate planning: This is the process of preparing for and managing the distribution of your assets after your death. Steps include creating a will, designating beneficiaries, and establishing trusts if necessary.
• Beneficiary: A person or entity that you designate to receive your assets upon your death. It can be any of your children, another loved one, a charity, or any other individual or organization you wish to support. A checking account beneficiary can differ from an heir, who inherits your assets through probate—a legal procedure that validates your will and distributes your assets accordingly.

Why choose a checking account beneficiary?

There are several good reasons to name a checking account beneficiary.

You’ll control who gets your assets.

When you name a beneficiary, you decide who will receive the funds in your checking account after your death. If you don’t designate a beneficiary, those funds will simply be included in your overall estate.

Beneficiary designations will override your will.

If your will specifies asset distribution and your checking account has a beneficiary, the beneficiary designation takes precedence. This can be advantageous, as it allows funds to be distributed more efficiently.

Funds are transferred without going through probate.

The probate process can be lengthy, costly, and emotionally draining for your loved ones. Naming a checking account beneficiary means the funds are transferred directly to them, bypassing probate and fast-tracking financial support during a difficult time.

Tip: Life events such as marriages, divorces, births, and deaths might shift your preferred beneficiaries. By routinely reviewing and updating your designated beneficiaries, you’ll ensure your money goes to the people you want it to, even if personal circumstances change.

How to name a checking account beneficiary

You can add a beneficiary to a Discover® checking account by following a few easy steps:

1. Choose your beneficiary.
2. Gather all required information:
   1. Beneficiary Name
   2. Beneficiary Date of Birth
   3. Beneficiary Social Security Number
   4. Beneficiary contact information including address and phone numbers (optional)
3. Log in to your Account Center either through website or through mobile app and manage your Beneficiaries there.
   • Online Account Center:  Go to ‘Profile’ in the top right corner and from the dropdown choose ‘Manage Beneficiaries’
   • Mobile Application: Go to ‘More’ at the right bottom and ‘Beneficiaries’ can be found under the ‘Account Management’ section.
4. You can also add your Beneficiary by phone by calling us at 1-800-347-7000 and provide all required information over the phone.
5. To remove or modify already added Beneficiaries, please follow the same steps to update your designation.

Although checking accounts don’t require beneficiaries, adding one or more offers certain advantages, including peace of mind. In a few simple steps, you can designate a checking account beneficiary to help ensure that your assets are distributed according to your wishes.

Are you and your partner ready to combine financial lives and be one another’s beneficiaries? Consider the pros and cons of a joint bank account.

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The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover Bank or its affiliates.