What adding a beneficiary means and why you might do it

A beneficiary is a person you name to receive money from your account after you die. Bank of America lets you name beneficiaries on most deposit accounts—checking, savings, money market—and on certain investment accounts. When you die, the money in that account passes directly to the beneficiary you named, without going through probate (the court process that normally settles an estate).

This is different from naming someone in your will. A beneficiary designation on your bank account overrides your will, so the money goes to the person you named on the account form, regardless of what your will says. That's why it matters to get it right and to update it if your life changes.

You can name one beneficiary or multiple beneficiaries. If you name more than one, you can decide whether they split the money equally or in percentages you choose. You can also name a contingent beneficiary—someone who gets the money only if your first choice dies before you do.

Key Takeaways

  • You can add or change a beneficiary on most Bank of America deposit and investment accounts by logging into your online account, calling customer service, or visiting a branch in person.
  • The beneficiary you name will receive the account balance directly after your death without the account going through probate.
  • You can name multiple beneficiaries and decide what percentage each one receives, or name a contingent beneficiary to receive the money if your first choice dies before you do.
  • Bank of America does not charge a fee to add or update a beneficiary, and the change takes effect as soon as the bank processes it.

Adding a beneficiary online through your Bank of America account

Log into your Bank of America online account or mobile app. Go to the account you want to add a beneficiary to—this works for checking, savings, and money market accounts. Look for a menu option labeled "Account Settings," "Manage Account," or "Profile." The exact wording varies depending on whether you are using the website or the app.

Select the option to view or manage beneficiaries. You will see a form asking for the beneficiary's full name, date of birth, Social Security number or tax ID, and relationship to you. If you are naming multiple beneficiaries, you will also specify what percentage of the account each person receives. Make sure the percentages add up to 100 percent.

Review the information carefully before you submit. Once you confirm, Bank of America will process the change. You should receive a confirmation email or see the update reflected in your account settings within one business day. Keep that confirmation for your records.

Adding a beneficiary by phone or at a branch

Call Bank of America customer service at 1-800-432-1000 and tell them you want to add or update a beneficiary on your account. Have your account number ready, along with the beneficiary's full name, date of birth, and Social Security number. The representative will walk you through the form and confirm the details with you before processing the change.

If you prefer to do this in person, visit any Bank of America branch with a photo ID and your account number. Ask to speak with a banker about adding a beneficiary. They will complete the form with you, answer any questions, and give you a copy of the completed form. This method is useful if you want to discuss your options or if you are not comfortable doing it online.

Whether you call or visit a branch, the change typically takes effect within one to two business days. Ask for written confirmation and keep it with your important documents.

What information you need to provide

Bank of America will ask for the beneficiary's full legal name exactly as it appears on their government ID. They will also need the beneficiary's date of birth and either a Social Security number or tax ID number. If the beneficiary is a minor, you may need to name a custodian or trust to hold the money until they reach adulthood, depending on your state's laws.

If you are naming an organization or charity as a beneficiary, you will provide their tax ID number instead of a Social Security number. Some accounts may not allow non-individual beneficiaries, so ask Bank of America whether the account type you have supports this.

Have this information ready before you start, whether you are doing it online, by phone, or in person. It speeds up the process and reduces the chance of errors.

Naming multiple beneficiaries or a contingent beneficiary

You can name as many beneficiaries as you want on a single account. For each one, you specify what percentage of the account they receive. If you name three people and want them to split equally, you would give each one 33.33 percent (or you can round to 33, 33, and 34 percent). The percentages must total 100 percent.

A contingent beneficiary is someone who receives the money only if your primary beneficiary dies before you do. For example, you might name your spouse as the primary beneficiary and your adult child as the contingent beneficiary. If your spouse dies first, the money goes to your child. If your spouse is still alive when you die, your spouse gets the full amount and your child receives nothing.

You can set up contingent beneficiaries for each primary beneficiary, or name one contingent beneficiary to receive the entire account if all primary beneficiaries have died. Discuss your situation with Bank of America to make sure the structure you want is set up correctly.

Updating or removing a beneficiary

Your life changes—you get married, divorced, have children, or your relationship with someone shifts. You can update your beneficiary at any time using the same methods you used to add one: online, by phone, or in person at a branch. There is no fee to make changes.

To remove a beneficiary entirely, log into your account or contact Bank of America and delete that person's name from the form. If you are removing your only beneficiary without naming a replacement, the account will have no beneficiary designation, and the money will go through probate when you die.

Update your beneficiary whenever your circumstances change significantly. Many people forget to do this after a divorce or the birth of a child, which can lead to money going to someone you no longer want it to go to. Review your beneficiary designations every few years to make sure they still reflect your wishes.

How beneficiary designations work with your will and estate

A beneficiary designation on your bank account is separate from your will. The account passes directly to the beneficiary you named, outside of probate. This means the money does not become part of your estate and is not subject to the delays and costs of probate court.

However, if you name your estate as the beneficiary (which is rare and usually not recommended), the account will go through probate like any other asset. If you name a minor as the beneficiary without a custodian or trust in place, the court may appoint a guardian to manage the money until the child reaches adulthood.

Your will can address what happens to accounts that do not have a beneficiary designation, but it cannot override a beneficiary designation you have already made. If you want to change who receives the money, you must update the beneficiary designation itself, not just your will.

Frequently Asked Questions

Can I name my minor child as a beneficiary?

Yes, but Bank of America may require you to name a custodian or set up a trust to manage the money until your child reaches adulthood. Ask the bank what options are available in your state. Without a custodian or trust in place, a court may need to appoint a guardian to handle the funds.

What happens if I name someone as a beneficiary and then we get divorced?

The beneficiary designation stays in place unless you change it. In some states, divorce automatically removes a spouse as a beneficiary on certain accounts, but this varies. Do not assume the law handles it for you—contact Bank of America and update the designation yourself to be certain.

Can I change my beneficiary if I am not the account owner?

No. Only the account owner can add, change, or remove a beneficiary. If you are a joint account holder but not the primary owner, you cannot make changes to the beneficiary designation. The account owner must do this themselves or give you power of attorney.

Is there a fee to add or change a beneficiary?

No. Bank of America does not charge a fee to add, update, or remove a beneficiary designation. The change is free and takes effect within one to two business days.

What if I want to name a charity as my beneficiary?

You can name a registered charity as a beneficiary using its tax ID number instead of a Social Security number. Not all account types support this, so confirm with Bank of America first. This is a common way to leave money to causes you care about without going through probate.