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What forms are needed to change beneficiaries on all my bank accounts?

What forms are needed to change beneficiaries on all my bank accounts?

Full question:

I have received the form, VA-P003A, and want to know if the agent would have the power to change beneficiaries stated by the principal for any or all money market, certificate of deposit, or savings accounts. Please let me know if this power would apply to any of these.

Category: Power of Attorney
Date: 04/07/2025
State: Virginia

Answer:

The form states that the power to change designation of beneficiaries is granted as to life insurance policies. The stated powers with regard to CD's are to acquire and redeem. Under the Latin principal of interpretation, expressio unius est exclusio alterius, the express mention of one thing excludes others not mentioned. Where there is a list of words which is not followed by general words then the act will only apply to the items in the list. Therefore, the power to change beneficiaries on a CD are stated, however, it's possible the power may be implied under a more general duty granted. The answer would depend on the facts and circumstances involved at the time. It may be possible that such powers could be acted on by the agent if it was necessary to carry out the business of the principal. If the change of beneficiary was done against the wishes or best interest of the principal, or to the personal gain of the agent, it could be a basis for a breach of fiduciary duty complaint.

If you wish to exclude, restrict, or add a specific power, our forms our able to be modified. For example, a statement denying the power to change beneficiaries may be added to the banking section.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Which is better, pod or beneficiary?

A Payable on Death (POD) designation allows funds in an account to pass directly to the named beneficiary upon the account holder's death, avoiding probate. A beneficiary designation, however, may apply to various assets, including life insurance and retirement accounts. The choice depends on your financial goals and the specific accounts involved. PODs are often simpler for bank accounts, while beneficiary designations may offer broader coverage. It's advisable to consult with a legal professional to determine which option best suits your situation.

Who has the authority to change the beneficiary?

Typically, the account holder or principal has the authority to change the beneficiary on their accounts. If a financial power of attorney (POA) is in place, the agent may have the authority to change beneficiaries, but this is limited to the powers granted in the POA document. Always check the specific language in the POA to understand the extent of the agent's authority regarding beneficiary changes.

Can a financial POA change beneficiaries?

A financial power of attorney (POA) can change beneficiaries only if the POA document explicitly grants that power. If the document does not specify this authority, the agent typically cannot make such changes. It's important to review the POA to understand what powers have been granted to the agent regarding beneficiary designations.

How can you find out if you are a beneficiary on a bank account?

To find out if you are a beneficiary on a bank account, you can ask the account holder directly. If the account holder is unavailable, you may need to review any estate planning documents, such as a will or trust, that might list beneficiaries. Banks typically do not disclose beneficiary information without the account holder's consent due to privacy laws.

Does a money market account have a beneficiary?

Yes, a money market account can have a beneficiary designation. This allows the account holder to specify who will receive the funds in the account upon their death. It's important for the account holder to complete the necessary paperwork with the bank to establish a beneficiary. Always check with the financial institution for their specific policies regarding beneficiary designations.