💰 Bank Accounts, Beneficiaries & Your Money
Who Gets the Money in Your Accounts When You Die?
You may have a will.
You may have already decided who you want to receive your money.
But here's something many people don't realize:
Your will may NOT control every bank account you own.
How an account is set up can determine what happens to the money after your death.
Texas law recognizes several different types of bank-account ownership arrangements, including accounts with Payable-on-Death (POD) beneficiaries.
And this is one area of estate planning that may be surprisingly easy to review and correct.
🏦 START WITH YOUR BANK ACCOUNTS
Think about every financial institution where you currently have money:
💰 Checking accounts
💰 Savings accounts
💰 Money market accounts
💰 Certificates of Deposit (CDs)
💰 Credit union accounts
💰 Online bank accounts
You need to know more than:
“My money is at my bank.”
You need to know:
How is each account legally set up, and what happens to the money when I die?
💡 WHAT IS A PAYABLE-ON-DEATH BENEFICIARY?
A Payable-on-Death beneficiary, commonly called a POD beneficiary, is someone you designate to receive funds remaining in an account after your death.
Texas's statutory account form describes a single-party account with a POD designation this way: the owner owns the account during life, and upon the owner's death, ownership passes to the designated POD beneficiary or beneficiaries rather than becoming part of the owner's estate.
In simple terms:
While you're alive → The money is yours.
After you die → The remaining money can pass to the person you've designated.
That can be very different from leaving the account to someone through your will.
🟢 CAN I ADD A POD BENEFICIARY MYSELF?
Usually, this is something you arrange directly with your bank or financial institution.
You generally don't need to hire an attorney just to ask your bank:
“Does my account currently have a Payable-on-Death beneficiary?”
That's a phone call, online-account review or trip to the bank that you can make yourself.
If there isn't one, ask:
“Can I add a POD beneficiary to this account?”
Then have the bank explain its procedure and provide its required documentation.
⭐ THIS COULD BE A “DO IT TODAY” ITEM.
You don't necessarily need to make an attorney appointment.
You don't need to create your own legal form.
Start with your financial institution.
🟡 DOES A POD DESIGNATION NEED TO BE NOTARIZED?
Don't automatically go to a notary.
Your bank or financial institution establishes the procedure for completing its account documents.
Ask the institution what identification, signatures or documentation it requires.
Follow the bank's procedure.
Don't download a random POD form online and assume that completing it changes the designation on your bank account.
🔵 DO I FILE A POD DESIGNATION AT THE COURTHOUSE?
Generally, no.
This isn't like recording a Transfer on Death Deed for real estate.
The POD designation is established with the financial institution holding the account.
That's why contacting the bank directly is so important.
⚠️ DON'T CONFUSE POD WITH “AUTHORIZED USER” OR “CONVENIENCE SIGNER”
This is a very important distinction.
Someone being allowed to help you with your account while you're alive does not necessarily mean that person receives your money when you die.
Texas's statutory account disclosure specifically explains that a convenience signer can make transactions on your behalf during your lifetime but doesn't own the account merely because they are a convenience signer. The signer receives the account at death only if separately designated in a way that provides that right, such as being named as a POD payee.
So don't assume:
“My daughter can sign on my account, so she'll automatically get the money.”
Ask the bank exactly how the account is titled.
👩❤️👨 WHAT ABOUT JOINT BANK ACCOUNTS?
This is another area where assumptions can cause problems.
People often think:
“We're both on the account, so whoever lives longest automatically gets everything.”
That isn't something you should assume.
Texas law distinguishes between different multiple-party account arrangements, including accounts with and without rights of survivorship.
Ask your bank:
“Is this account set up with a right of survivorship?”
Don't simply ask:
“Is this a joint account?”
Those aren't necessarily the same question.
📝 SIMPLE EXAMPLE
John and Linda are married.
They have $20,000 in a bank account.
Instead of simply assuming:
“We're married, so the survivor automatically gets the account,”
they should ask the bank:
“Exactly how is this account titled, and what does our account agreement say happens when one of us dies?”
That one question could uncover something they didn't realize about their account.
📜 WHAT IF MY WILL SAYS SOMETHING DIFFERENT?
This is extremely important.
Texas's statutory bank-account disclosure specifically warns that your will may not control the disposition of funds held in certain types of accounts.
For example, suppose your will says:
“I leave everything equally to my three children.”
But one of your accounts has only one child properly designated as its POD beneficiary.
Don't assume the will automatically changes that account designation.
This is why your will and your beneficiary designations need to be reviewed TOGETHER.
🚨 CHECK OLD BENEFICIARIES
This is one of those little things that can become a very big problem.
Think about how much your life may have changed over the years.
You may have:
💍 Gotten married
💔 Gotten divorced
👶 Had children
👶 Had grandchildren
⚰️ Lost a spouse
⚰️ Lost a beneficiary
🤝 Had relationships change
💰 Opened accounts decades ago
You may not even remember who you listed.
Don't guess.
Check.
📋 BANK ACCOUNT BENEFICIARY WORKSHEET
Use this worksheet to review your accounts.
ACCOUNT #1
Financial Institution:
Type of Account:
☐ Checking
☐ Savings
☐ CD
☐ Money Market
☐ Other
Account Owner(s):
POD Beneficiary Listed?
☐ Yes
☐ No
☐ Don't Know
Beneficiary Name(s):
Right of Survivorship?
☐ Yes
☐ No
☐ Don't Know
Date I Verified This With My Bank:
ACCOUNT #2
Financial Institution:
Type of Account:
Account Owner(s):
POD Beneficiary Listed?
☐ Yes
☐ No
☐ Don't Know
Beneficiary Name(s):
Right of Survivorship?
☐ Yes
☐ No
☐ Don't Know
Date Verified:
ACCOUNT #3
Financial Institution:
Type of Account:
Beneficiary:
Date Verified:
📞 QUESTIONS TO ASK YOUR BANK
You don't have to know the legal terminology before calling.
You can simply say:
“I'm reviewing my estate planning and I want to verify how my account is currently set up. Can you tell me whether I have a payable-on-death beneficiary, who is listed, and whether my account has a right of survivorship?”
Then ask:
“If I want to add or change my beneficiary, what do I need to do?”
Write down the answer.
Don't rely on what you think you selected when you opened the account 15 years ago.
🟢 DIY OR 🔴 ATTORNEY?
For this section, our system is pretty simple.
🟢 YOU CAN START THIS YOURSELF
Contact your bank.
Verify account ownership.
Verify POD beneficiaries.
Verify survivorship status.
Ask how to add or change beneficiaries.
Update your information through the bank's required procedure.
Keep confirmation with your important financial records.
🔴 WHEN SHOULD I CONSIDER AN ATTORNEY?
A simple beneficiary update may not require an attorney.
But professional estate-planning advice becomes more important when:
⚠️ You have a blended family
⚠️ You want money held for minor children
⚠️ A beneficiary has special needs or receives needs-based government benefits
⚠️ You want conditions placed on an inheritance
⚠️ You have substantial assets
⚠️ You use trusts
⚠️ You're concerned about creditors
⚠️ You have complicated family circumstances
⚠️ Your bank-account designations conflict with the rest of your estate plan
⚠️ You aren't sure who should legally receive the money
In these situations, simply adding someone's name to an account may not accomplish your larger estate-planning goal.
🚫 DON'T ADD SOMEONE AS A JOINT OWNER JUST BECAUSE YOU WANT THEM TO HELP YOU
This deserves its own warning.
There can be an important difference between:
Someone helping you manage your money
and
Someone actually owning the account with you.
If your goal is simply to have someone help pay bills if you become unable to handle your finances, there may be other arrangements—such as an appropriate power of attorney or a convenience signer—that should be considered.
Don't change account ownership without understanding what the change actually does.
📂 KEEP A BANK ACCOUNT LIST
Your family doesn't necessarily need access to your money today.
But the appropriate trusted person should be able to determine where your accounts are located if something happens to you.
Create a list containing:
🏦 Financial institution
💰 Type of account
🔢 Last four digits of account number
👤 Account owner(s)
❤️ Beneficiary information
📞 Bank contact information
📂 Where important documents are kept
⚠️ Protect this information.
Do not put passwords, PIN numbers, complete account numbers or other sensitive information somewhere unsecured.
✅ YOUR “DO IT THIS WEEK” CHECKLIST
This page shouldn't just be something you read.
Take action.
☐ Make a list of every bank and credit union I use
☐ Check every checking account
☐ Check every savings account
☐ Check CDs and money-market accounts
☐ Verify how each account is titled
☐ Ask whether each account has survivorship rights, if applicable
☐ Verify every POD beneficiary
☐ Update outdated beneficiaries where appropriate
☐ Record the date I verified everything
☐ Store the information securely
This could potentially be one of the easiest estate-planning tasks you complete.
❤️ DON'T LEAVE YOUR MONEY WITHOUT A PLAN
You worked for it.
You saved it.
You should know what happens to it.
A 10-minute conversation with your bank today could prevent your family from having to figure out later:
“What happens to this account?”
Don't assume.
Verify it.
➡️ NEXT: Retirement Accounts, Investments & Life Insurance
Bank accounts aren't the only assets that can have beneficiaries.
Next we're going to look at:
📈 401(k)s
💼 IRAs
📊 Investment and brokerage accounts
🛡️ Life insurance
❤️ Primary beneficiaries
👥 Contingent beneficiaries
⚠️ Outdated beneficiary designations
👶 Minor beneficiaries
💔 Divorce and beneficiary changes
And we'll answer the same important question:
Can I check and update these myself, or do I need professional help?
← PAGE 3: PROTECTING YOUR HOME & REAL ESTATE
🏠 ESTATE PLANNING HOME
PAGE 5: RETIREMENT, INVESTMENTS & LIFE INSURANCE →
⚖️ IMPORTANT DISCLAIMER
This information is for general educational purposes only and is not legal, tax, investment or financial advice.
Account ownership and beneficiary rules vary depending on the type of account, the financial institution, applicable law and individual circumstances.
Always verify the current ownership and beneficiary information directly with the institution holding the account. If your circumstances involve trusts, minor beneficiaries, special-needs beneficiaries, complicated family relationships or significant assets, consider obtaining advice from a qualified estate-planning attorney, tax professional or financial professional.