How To Leave A Bank Account In Will?

Learn how to leave a bank account in your will. Get insights on Utah laws, probate processes, and essential steps to ensure a smooth asset transition.

How to Leave a Bank Account in Your Will

Planning for the future is a crucial aspect of ensuring your loved ones are cared for after you are gone. One important part of this planning involves deciding how to pass on your financial assets, like your bank accounts. If you’re wondering how to leave a bank account in your will, you’re in the right place! Here, we’ll delve into the specifics under Utah law, ensuring you feel confident in your decisions.

Understanding the Basics of a Will

Before addressing how to leave a bank account in a will, let’s take a moment to understand what a will is. A will is a legal document that states how you want your assets to be distributed after your death. It also allows you to appoint a guardian for any minor children. In Utah, as elsewhere, a will must fulfill certain legal requirements to be valid.

Legal Requirements for a Will in Utah

In Utah, for a will to be legally valid, you must adhere to several conditions as stipulated by Utah Code 75–2–502:

• The person making the will (the testator) must be at least 18 years old and of sound mind.
• The will must be in writing.
• The will must be signed by the testator or someone in the testator’s presence and under the testator’s direction.
• Two or more witnesses must sign the will in the presence of the testator.

These steps ensure the will reflects your true desires and helps prevent future contestations in courts.

Why You Should Include Your Bank Accounts in a Will

Many people mistakenly believe that their heirs can automatically access their bank accounts upon their death. However, without explicit instructions, they may face lengthy delays in probate. Including your bank accounts in your will provides clarity and expedites the legal process for your beneficiaries.

Consequences of Excluding Bank Accounts

If a bank account isn’t included in your will or hasn’t been set up with a payable-on-death (POD) beneficiary, it could become part of the residuary estate. This term refers to any remaining part of your estate that isn’t specifically included in the will, which could subject it to intestate succession rules — perhaps leading to unintended beneficiaries or disputes.

How to Include Bank Accounts in Your Will

Including a bank account in your will involves clear language and explicit instructions. Here’s how you can prepare to do this effectively.

Steps to Include a Bank Account

1. Inventory Your Accounts: Start by listing all accounts, including account numbers and the bank’s details to avoid ambiguities.
2. Specify Beneficiaries: Clearly list the beneficiaries for each account. You may allocate different percentages to multiple beneficiaries.
3. Consult Legal Assistance: Consider consulting with a probate lawyer to ensure that your will is clearly articulated and complies with Utah law.
4. Review and Update Regularly: Regularly update your will to reflect any changes in your bank account details or your chosen beneficiaries.

These steps enhance clarity, ensuring your beneficiaries easily manage your intentions.

Example Scenario

Suppose you’re a resident of Provo, Utah, who wants to leave two bank accounts to your children — John and Mary. You decide that Mary, who may need financial support sooner, should receive 70% of your savings account, while John receives the rest. Explicitly specifying such details in your will helps prevent disputes and ensures clarity.

Legal Protection and Probate in Utah

Once you include a bank account in your will, it becomes subject to probate — an essential legal process. Understanding the steps in Utah ensures you know what to expect.

What Is Probate?

Probate is the legal process through which a deceased person’s will is validated, and their assets are distributed accordingly. The process confirms asset titles are appropriately transferred and that any debts are paid.

Utah’s Probate Process

Provo residents, like others in Utah, experience a probate process that typically involves:

• Filing the Will: Initiating probate requires filing the will in the district court of the appropriate county.
• Appointing a Personal Representative: Known previously as an executor, this person manages the estate, pays debts, and distributes assets as stipulated in the will.
• Distributing Assets: After settling debts, the remaining assets are distributed according to the will.

It’s important to understand that involving a probate lawyer can significantly streamline this process. Check out this probate lawyer for more information.

Common Misconceptions About Wills and Bank Accounts

Several misconceptions often arise regarding wills and bank accounts. Let’s address a few to alleviate any concerns and help you make informed decisions.

Misconception 1: All Assets Avoid Probate

Simply designating a beneficiary or joint account holder doesn’t always allow assets to bypass probate. If changes are needed, revisions must be clear and legally compliant.

Misconception 2: Wills Cover All Assets

Certain assets, like life insurance proceeds, are not covered solely by a will due to beneficiary designations. Clarifying the role of a will versus other estate planning tools is crucial.

Misconception 3: Wills Are Only for the Wealthy

Wills protect assets and ensure your intentions are respected, regardless of estate size. Everyone can benefit from a will, ensuring a seamless asset distribution process.

Frequently Asked Questions

Here are some common questions around wills and bank accounts that might help clarify lingering uncertainties:

1. Can a bank account have more than one beneficiary?

• Yes, you can designate multiple beneficiaries and specify how much each should receive.

1. What happens if I don’t have a will?

• Without one, Utah’s intestate succession laws dictate asset distribution, often resulting in outcomes that may not align with your wishes.

1. Can a will be changed after it’s written?

• Absolutely. You can modify your will through a codicil or rewrite it entirely.

1. Do joint accounts negate the need for a will?

• While joint accounts may automatically transfer to the surviving account holder, a will ensures clarity and may address nuances such as unequal contributions.

1. How does a payable-on-death designation work?

• A POD swiftly transfers account funds to the named beneficiary after your passing, circumventing probate.

Why Understanding This Matters

Knowing how to leave a bank account in your will isn’t just about legal compliance — it’s about peace of mind and ensuring your loved ones are quickly and effectively cared for. Understanding probate and the nuances of Utah’s legal requirements informs better decisions, protecting your intentions and minimizing potential disputes.

Conclusion

The combination of a well-written will and informed decisions regarding account designations can minimize undue stress and ensure smooth asset transitions. Taking proactive steps in understanding and implementing these instruments signifies responsible legacy planning.

To speak with a probate lawyer, call attorney Jeremy Eveland at (801) 613–1472. Find directions here.

Consider thanking the author by clapping this article, leaving a comment, or subscribing to my Medium newsletter for more insightful updates. Jeremy Eveland 8833 S Redwood Rd West Jordan Utah 84088 (801) 613–1472

The information contained in this article is for information purposes only and is not legal advice. For legal advice, hire a competent lawyer in your jurisdiction.