There are many different options when it comes to passing on your estate assets and many people will look for the simplest way to pass on assets to their loved one. In these circumstances a payable on death bank account is one streamlined way to allow a beneficiary in your estate to claim funds quickly.
If you set up a payable on death bank account in Massachusetts, you’ll be asked to determine who will receive those funds by filling out paperwork with the bank.
The owners of many bank accounts, particularly certificates of deposit and savings accounts will name a payable on death beneficiary. This means that when the last surviving owner or the primary account holder passes away, the payable on death beneficiary needs to contact the bank to claim the money. This does not involve any interaction with the deceased person’s will or involvement or oversight from the probate court.
This is because it does not pass through the terms of the deceased’s will and is not under the control of the executor. If the beneficiary is not sure how to proceed, the executor can be contacted for help especially when it comes to providing forms, such as a death certificate. The beneficiary might even have a few different options with the account based on if it is a certificate of deposit.
For example, it could be retitled in a beneficiary’s name, the funds could be completely withdrawn or the funds could be left inside the CD until its maturity date. In these circumstances, having the insight of an attorney in Massachusetts to help you to see how this can fit into your broader estate can help your loved ones avoid navigating the difficulties of asset transfer upon your death.
