Planning to care for your family after you pass away is likely a priority for you. There are several things to consider when you’re trying to figure out how to handle things in ways that can better help to ensure short-term and long-term factors favorable results after you die.
When it comes to the short-term planning, one of the most effective ways you may be able to care for those you love is by passing your bank account down to them. This is typically accomplished by using a Totten trust, which is another name for the payable on death designation that’s common for bank accounts.
How do you establish a Totten trust?
Establishing a Totten trust is a straightforward process. You simply need to fill out the form that the bank provides. This ensures that once you pass away, your loved ones can easily bring your death certificate and their photo identification to the bank to gain access to the funds in the account.
Setting up the Totten trust allows you to retain complete control over the account until you pass away. This means that the person who’s going to receive the funds won’t have access to the account until after you die, which ensures your financial security and peace of mind.
One important consideration for these situations is that you don’t need to include a bank account in the will if it has a payable on death designation set. The only assets that should be put in the will are those that aren’t covered by any other methods.
Working with someone familiar with estate planning and who can help you to articulate and execute wishes may be beneficial. Setting everything up now enables you to have peace of mind knowing that your loved ones will be cared for when you pass away.
