Can You Access Cash on the Death of Your Loved One?
- Posted on: Aug 27 2021
When you become disabled or pass away, bills and other necessities don’t just stop. Whether it’s buying groceries for you or paying for your funeral, your loved ones likely need a way to access your funds. However, if all of your money is solely in your name for your bank account or your trust, your loved one won’t be able to obtain any of it. That’s where cash availability planning comes into play.
Cash availability planning helps to plan ahead so that your loved one can access your money should you become disabled or deceased. Here are three different methods of cash availability planning.
1. Joint Signature Bank Account
One method of cash availability planning is to open up a joint signature bank account so that your loved one can also sign to withdraw funds. It’s also important to make sure that you have enough funds in your account to be able to pay for at least a month of regular expenses. Regardless of whether or not there is a will or a trust, a joint signature bank account allows your loved one to gain access to it.
Another method of cash availability planning is to appoint a co-trustee if you have a trust. A co-trustee would have the ability to sign on any bank accounts associated with the trust. However, it’s important that you include provisions in the trust that not only allow for you to appoint a co-trustee but also explain the proper procedure for appointing them. However, it’s necessary that you do so while you are alive and have the legal capacity. The only downside to appointing a co-trustee is that they would also have access to all of your money associated with the trust.
3. Durable Power of Attorney
Finally, if you should become disabled, a Durable Power of Attorney can help your loved one to gain access to your trust. It should be noted, however, that not all banks will allow for a Durable Power of Attorney to access the money; plus, you must include the appropriate legal language in the trust for the Durable Power of Attorney to be able to do so. A Durable Power of Attorney is of no use once you pass away.
The Law Offices of Brian L. Fox, APLC Help Individuals with their Estate Planning Needs
While important, estate planning can often be complex and confusing. Simple errors can often lead to a huge mess. This is why it’s in your best interest to consult with a knowledgeable and experienced Estate Planning attorney.
At the Law Offices of Brian L. Fox, APLC, we know how important it is to protect what – and whom – you care about. We will help you to establish a comprehensive estate plan that meets your needs. To learn more or to schedule a free consultation, contact us today!
Posted in: Estate Planning