General end of life planning information and options from Legal Aid of Western Missouri
If you take the necessary steps, your wishes can be carried out without your family having to go through the probate process in court. You can add your chosen recipient(s) as beneficiary(ies) now.
Bank Accounts
A Payable on Death (POD) beneficiary is a simple way to transfer money directly from your bank account(s) to a designated beneficiary. You should speak with your bank about their procedure for naming a POD beneficiary for your account(s).
Please note that a POD beneficiary is unable to access the money in your account until you pass away. A POD designation is different than adding someone as an owner on your account.
Pension, Retirement Accounts or Annuity Contracts
Review your pension or annuity contracts to be sure that you have named a beneficiary that accords with your wishes. This allows for the designated beneficiary to work with the account’s company representative to arrange for the transfer of funds to themselves. You should contact the provider to see what forms need to be completed to name or change a beneficiary. Each company has their own process and paperwork, any information you can provide to your beneficiary is helpful.
Motor Vehicle
A Transfer on Death (TOD) beneficiary is a simple way to transfer ownership of your vehicle(s) after you die. By naming a TOD beneficiary on your title application, you will avoid the need for the vehicle to go through probate upon your death.
If a TOD beneficiary is not currently named on your vehicle title, or if you would like to name a different beneficiary, you will need to complete a new title application with the Department of Motor Vehicles. This typically costs $8.50 for a new title and $6 for processing.
Please note, a TOD beneficiary has no ownership rights to the vehicle until you pass away.
Life Insurance
Your life insurance policy should have a beneficiary named and likely a secondary beneficiary as well. It is a good idea to periodically review named beneficiaries and make sure that it reflects your wishes. You should contact your life insurance provider to get whatever forms are needed to add or change a beneficiary.
If you have policies for family members, you should discuss if that family member would like to be named as a policy owner so that they can take over the policy or cash it out for the cash value upon your death if it hasn’t been paid in full.
Personal Items
For personal items in your possession, you may wish to create a document describing the items and stating who you wish for those items to go to when you die. It is helpful to discuss this with your family and provide documentation so they are aware of your wishes.
Beneficiary Deed
A beneficiary deed is a way for you to transfer real property, like your house, to your chosen beneficiary. The property will automatically transfer into your beneficiary’s name upon your death. A beneficiary deed has to be recorded with the Recorder of Deeds before your death for it to be effective. Legal Aid highly suggests you contact an attorney to draft this deed.
Durable Power of Attorney
A financial Power of Attorney would allow your chosen representative to make decisions regarding your finances. A medical Power of Attorney would allow your chosen representative to make medical decisions on your behalf.
You can choose, if you would like, for the document(s) to become effective immediately upon signing, or once two doctors determine you are no longer able to make your own decisions.
Powers of Attorney documents must be completed before an individual loses the ability to knowingly make decisions themselves. Please note that a Power of Attorney no longer has any effect after you pass away. Therefore, it is not a substitute for other planning. Legal Aid highly suggests you contact an attorney to prepare these documents.
Make a Plan
Please note, it is safest to name a POD or TOD beneficiary as opposed to adding someone as a co-owner. You are always able to change a POD or TOD designation but giving someone ownership rights is not so easily changed.
With all of these options, it’s very important to let your designated beneficiary know of your wishes. Provide the beneficiary information on the account or asset so they can take action upon your death, such as the last four digits of the account number, documentation you completed to name them beneficiary and the name of the company who holds the asset.
If you have more or different assets than what are listed below or feel you need additional assistance to deal with your personal property and other assets, sometimes a will, trust, durable power of attorney, or other estate planning option may be needed. To learn more about these options and their possible benefit to you, speak with a private attorney who handles probate or estate matters.
This website is for informational purposes only and does not provide legal advice. This site does not recommend or discourage any particular course of action. Any steps you choose to take based on the information provided are solely your responsibility. Using this site does not form an attorney/client relationship.