Account Beneficiary
The beneficiary of an account is the person named to benefit from the account after the account holder’s death.
The beneficiary of an account is the person named to benefit from the account after the account holder’s death. Beneficiaries can be named for checking accounts, individual retirement accounts (IRAs), mutual funds, annuities, trusts, wills, and life insurance policies. Naming an account beneficiary may help to simplify the process of having your assets passed down after your death.
Beneficiaries are either named specifically in related documents, or have met the stipulations that make them eligible for specified distribution. Under normal circumstances, money in your bank accounts, investment accounts, etc. is considered part of your estate after death. However, adding an account beneficiary allows you, and your beneficiary, to bypass the estate and probate process.
To claim the money, the beneficiary simply has to prove his or her identity and produce a certified copy of the account holder’s death certificate. In community property states like California, the spouses of married account holders automatically get half the assets upon their spouse’s death. The only exceptions are for assets acquired before the marriage or inherited funds.
If you want to leave the assets to a beneficiary other than your spouse, your spouse must consent in writing.
An account beneficiary is a person or entity designated to receive the assets of a financial account upon the account holder's death. Naming a beneficiary allows assets to transfer directly without going through probate. Onramp provides Bitcoin financial services including Bitcoin IRA accounts where clients can designate beneficiaries for their holdings.
Frequently Asked Questions
Why is it important to name an account beneficiary?
Naming a beneficiary ensures your assets transfer directly to your chosen recipient upon death, bypassing the often lengthy and costly probate process. Without a beneficiary, asset distribution is determined by state law.
Can I name a beneficiary for a Bitcoin IRA?
Yes. Like traditional IRAs, a Bitcoin IRA allows you to designate primary and contingent beneficiaries. Onramp offers Bitcoin IRA services where clients can name beneficiaries to inherit their Bitcoin holdings.
What is the difference between a primary and contingent beneficiary?
A primary beneficiary is first in line to receive account assets upon the holder's death. A contingent (secondary) beneficiary receives the assets only if the primary beneficiary is unable or unwilling to accept them.
