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Naming bank account beneficiaries can cut probate delays
Payable-on-death designations can help money reach heirs or charities faster than probate, potentially avoiding court fees.
Naming beneficiaries for bank accounts can make it easier for loved ones to access funds after a death, since money without designated beneficiaries may be tied up in probate court for a while, according to Yahoo Finance.
The outlet says designating a beneficiary, or multiple beneficiaries, can speed up the transfer of checking and savings proceeds, including to family members who need the money for expenses such as funeral costs.
Yahoo Finance also notes that if children are involved and are under 18, families may want to discuss setting up a trust with an adviser or estate planner so the funds are managed by a trustee until the minor reaches a specified age.
It adds that even with a smooth probate process, there may still be costs, with the article citing court fees of several hundred dollars at least, and highlights payable-on-death designations that can also name a charity as a beneficiary.