All Soul’s Day is drawing near. With such, it is but appropriate that our posts for the week would be about death. I can’t after all furnish horrifying stories about money. I am certain we have been there like piling debts, credit card bills and more. So let us focus on one inevitable situation that we all must face later which is death. I know this sounds negative but hey the least we can do is prepare for it. After all, we will all get there in time unless you are a vampire or you are one of the beneficiaries of the fountain of youth. Should that be the case, tell us where the fountain is. Share it will you?
One common question with regards to our demise as a human being is with regards to our bank accounts. What will happen if we die? I know this is a very morbid scenario but hey we will all get there. What about our savings account? Our savings deposit and what not? Will the bank seize it? How about our family? Will they get it? Will they?
Now before you panic, here are the things that will happen should that event occurs. This simply provides an overview on what to do. If you really want to dig deeper with regards to claims, it is wise to ask your banks for their detailed steps on how your family members can claim your account should an unfortunate event happens.
Solo Account
In the event that your bank account is under your name without stating a payable on death beneficiary, then the account will be put on hold. This will then be released to your beneficiary upon presentation of the required documents. One of the important documents to present is the BIR/Tax clearance. This is the estate tax. The estate tax ranges from 5% to 20%. That is why, it is imperative to prepare such by getting an insurance that will be enough to cover the estate tax. You don’t want to leave your beneficiary with such tax right?
Will
If you have a will, this will dictate who inherits your account. Just make sure you mention who. It is then the responsibility of the executor to distribute the asset and announce it to the beneficiaries. The will typically undergoes probate and taxes are assessed. This is not just for the wealthy and the rich. It is important that even us will have to create one.
Joint Account
Should you have this kind of account with your spouse and in the event of your death, the spouse will have sole ownership of your account. There is also no need for an official proving of will for the account to be transferred.
Payable on death Beneficiary
If the spouse is named as the payable on death beneficiary to the account, he or she can then take ownership of it. They will only need to show the necessary documents like the death certificate and proof of identity and legitimacy of the connection.
These are just some of the things you can anticipate with your bank account in the event of your demise. Remember to know more of such, it would be best that you visit your local bank where your accounts lie. More than asking how to open accounts, ask as well what will happen to it upon your death. After all, our lives will lead there. So better know and prepare for it.
P.S. My very first e-book is finally here. You can buy it using the Buy Now button at the right or via bank deposit. Only Php 150.00. Purchase your copy now.
P.P.S To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 43 already! Did you deposit the next amount yet?
P.P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.
P.P.P.P.S I am also sharing my stock market secrets and information via these resources.
P.P.S To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 43 already! Did you deposit the next amount yet?
P.P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.
P.P.P.P.S I am also sharing my stock market secrets and information via these resources.