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An illustration of a person passing a torch to another person. The flame is represented with a bag of money.
An illustration of a person passing a torch to another person. The flame is represented with a bag of money.
An illustration of a person passing a torch to another person. The flame is represented with a bag of money.

Understanding beneficiaries: What are they?

published october 2024

Make sure your money goes where it needs to.

Have you ever wondered what happens to your bank account if something happens to you?

We know, it’s not a fun topic to think about. But it’s important to plan ahead. Adding a beneficiary could save your loved ones from a huge headache down the road.

No matter how old you are, or what stage of life you’re in, adding beneficiaries to your bank account is an easy step that makes sure your money easily ends up where you want it to go.

What is a beneficiary?

Before we get too deep into why you should add beneficiaries to your accounts, let’s go over what they are.

Simply put, it's the person or charitable organization you choose to receive the money in your account after you’re gone.

Why should you add a beneficiary?

Your money, your choice.

Adding a beneficiary means you get to decide exactly who gets your money when you’re gone. Whether it’s your spouse, your kids, a sibling, or close friends, it’s totally up to you.

Avoid the probate process.

Without a beneficiary, your accounts could end up in probate court. That could get expensive, time consuming, and stressful. By naming a beneficiary, your assets usually transfer directly to them.

It’s easy.

Setting up a beneficiary with STCU is simple and quick. You can visit a branch, call us, or do it in online banking in just a few clicks.

If it’s a person, all you need is their name, social security number, and birthday. If it’s a charity, you’ll need its name and Tax Id Number (TIN).

Thinking about end-of-life planning isn’t anyone’s favorite topic, but it’s an important part of financial planning. Adding beneficiaries makes sure there’s less hassle for your loved ones and that your legacy lives on.