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Do I need to tell my bank about my bank account allocations in Covet?

Covet makes it easy to document your wishes when it comes to the distribution of your assets after you've gone. But it is critically important to ensure your bank's and/or financial institution's records align with the beneficiary and allocation wishes you've detailed in Covet. 

Covet makes is easy to include bank account information into your Covet estate plan documents. Covet also makes it easy to document your wishes in regards to how you would like those banking assets distributed among your beneficiaries in your estate plan documents. However, there is currently not a way for Covet to communicate those wishes back to the bank, but doing so is critically important. 

Most banks and financial institutions offer Pay On Death (POD) or Transfer On Death (TOD) services within their account services.

It's important that your Pay on Death (POD) or Transfer on Death (TOD) designations at your bank align with your wishes detailed in your Covet account, your will and other estate plan documents for several reasons:

  1. Avoiding Conflicts: If your POD or TOD designations differ from your will, it can lead to conflicts among heirs or beneficiaries. This might result in legal disputes, which can be time-consuming and costly.

  2. Immediate Transfer: POD and TOD accounts bypass the probate process and transfer directly to the named beneficiaries upon your death. If these designations don't align with your overall estate plan, certain assets may not be distributed as you intended.

  3. Superseding the Will: In many jurisdictions, POD and TOD designations take precedence over the instructions in your will for those specific accounts. If the designations don't match your will, the bank will follow the POD/TOD instructions, potentially overriding your intended estate distribution.

  4. Consistency in Intent: Aligning your designations with your will ensures that your overall estate plan reflects your wishes consistently, minimizing confusion and ensuring that all aspects of your estate are handled according to your preferences.

  5. Efficiency: Clear and consistent designations help in the efficient settlement of your estate, reducing the burden on your executors and beneficiaries.

Regularly reviewing and updating your POD, TOD, and estate planning documents is crucial to ensure they remain in alignment and reflect any changes you have made within your Covet account.

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Covet does not provide any legal, investment, accounting, financial, and/or tax advice. The Covet site includes access to software and self-help materials, which are not substitutes for the advice of an attorney, financial advisor and/or accountant.