Banking on peace of mind: How to prepare your accounts for the ones who depend on you

Planning for the future isn’t just about saving money; it’s also about making sure your loved ones can access it when they need it most. One of the most important, yet often overlooked, steps in financial planning is preparing your bank accounts for your beneficiaries. Doing this now can save your family time, stress, and even money later. 

Why it matters

When someone passes away without a designated beneficiary or joint account holder, their accounts may be subject to probate: a legal process that can be time-consuming, expensive, and emotionally draining. In some cases, if no one claims the funds, the money may be escheated (turned over to the state). Each year, millions of dollars in unclaimed property are held by the state of Hawaii.  

Avoiding this outcome starts with a few simple steps. 

1. Add a beneficiary or joint owner

• Beneficiary designation: Most financial institutions allow you to name a “Payable on Death” (POD) beneficiary. This person will receive the funds in your account without going through probate. 
• Joint ownership: Adding a trusted person as a joint owner gives them immediate access to the account if something happens to you. However, this also gives them access while you’re alive, so consider this carefully. 

2. Keep your beneficiaries informed

While you don’t need to share every detail, your beneficiaries should know: 

• Which financial institutions you bank with 
• Where to find important documents

If you prefer privacy, consider creating a secure file or folder with this information and letting your beneficiary know where to find it. 

3. Avoid inactivity and escheatment

If an account remains inactive for several years (typically 3–5 years), it may be considered dormant and subject to escheatment. To prevent this: 

• Make occasional transactions or logins 
• Ensure your contact information is up to date 

4. Consider estate planning tools

Explore what’s best for your situation: 

• Create a trust to manage how your assets are distributed 
• Draft a will to outline your wishes 
• Assign a power of attorney for financial decisions while you’re alive 

Many financial institutions partner with estate planning services like Trust & Will, which guide you through the process online.  

5. Talk to your financial institution

Your bank or credit union can help you: 

• Add or update beneficiaries 
• Understand account options 
• Learn about estate planning resources

Final Thought: Taking the time now to ensure your financial affairs are in order is one of the greatest gifts you can give your loved ones. It’s not just about money — it’s about peace, clarity, and compassion during life’s most difficult moments. Get in touch with a HawaiiUSA expert today. 

808.534.4300