By Paula Vaughn, EVP
Southwest Heritage Credit Union
Spring is almost here, making it the perfect time to review your financial accounts. One important step is to check whether you have a joint owner or a beneficiary listed on each account.
Is it better to have a joint owner or a beneficiary on your account?
A joint owner(s) will have full access to the funds and the ability to deposit, withdraw, or close the account immediately. Upon the death of an owner, the surviving owner retains full ownership of the funds, bypassing probate. This account designation is best for couples, partners, or families managing shared expenses.
A beneficiary designation (POD) allows the owner(s) to retain full control of the account, and the funds only pass to the beneficiary upon the death of all owners, avoiding probate.
You can have multiple beneficiaries, and you can even designate different beneficiaries for different accounts. For example, you might choose one person for your checking account, another for your money market account, and someone else for your savings account. This flexibility allows you to tailor your plans, so everything is distributed exactly as you intend. This designation is best for estate planning and ensuring specific people inherit funds without giving them access right away.
If you’re unsure whether a beneficiary is listed or if you’d like to update your designations, we’re happy to help. Taking a few minutes now to review your joint owners and beneficiaries can save time and prevent complications for your loved ones in the future.
For additional tips, check out our other blog on account styling and maximizing your NCUA coverage—it’s full of useful strategies to help you make the most of your accounts.