The Most Important Questions To Ask About Your Accounts

The Ask Three Questions Hub

By asking (and saving the answers to) the following three questions about each of your financial accounts — which include bank accounts, retirement accounts, and insurance policies — you will streamline the estate transition process for your heirs, ensure that no benefits are overlooked, and ultimately make it easier for heirs and beneficiaries during a challenging time.

Ask Three Questions Information Hub

Table of Contents

Key Things To Know

Asking three simple questions about each of your financial accounts and insurance policies can prevent confusion, reduce delays, and make things significantly easier for your loved ones after you're gone.

  • Identify all relevant accounts and policies: This includes checking, savings, retirement accounts, pensions, life insurance, and other financial or benefit-related assets.
  • Ask what happens to each account when you pass away: Understand whether the account transfers automatically, goes through probate, or follows instructions in a will or trust.
  • Confirm who can speak to the institution after your death: Make sure someone is legally authorized—this could be your executor, trustee, or a joint account holder.
  • Determine what benefits are available to beneficiaries: Know if the account or policy pays out a lump sum, ongoing income, or additional entitlements like death benefits or accrued interest.
  • Update your beneficiary designations regularly: Outdated beneficiaries can lead to disputes or delays. Check all forms after major life events.
  • Document the answers clearly: Save the responses in a place your executor or loved ones can access easily—preferably alongside your estate planning documents.
  • Understand the role of account titling: Whether an account is jointly held, payable-on-death (POD), or held in trust can dramatically affect how it transfers.
  • Avoid assumptions based on account type: Even two identical-looking policies can behave differently depending on how they're set up and who the provider is.
  • Communicate your findings with your loved ones: Don’t keep this information to yourself—make sure at least one trusted person knows where it is and how to use it.

The Three Questions

Asking "What will happen to this account and/or policy when I pass away?" is crucial for ensuring you and your family are well-informed and prepared for the future. Here’s why this question is important:

  • Understanding the Process: This question helps clarify the steps your family will need to take with the financial institution after your passing. It outlines who to contact, what documents are necessary, and how the institution will be notified, either directly or through a third-party like a credit reporting agency.
  • Financial Management: It's essential to know how any outstanding balances will be handled, whether secondary account holders will be affected, and if rewards or other accounts are impacted. This knowledge helps manage potential financial obligations and avoid surprises.

  • Legal and Beneficiary Details: Understanding whether a “Payable on Death” beneficiary designation exists or if you can set one up allows you to plan effectively for the smooth transfer of assets. This can simplify the process for your heirs and ensure your assets are distributed according to your wishes, potentially bypassing the lengthy and complex probate process.

  • Peace of Mind: Having clear answers to these questions provides peace of mind by ensuring that your financial affairs are in order, reducing stress and confusion for your loved ones during a difficult time.

Asking "Who is authorized to access and communicate with the institution regarding this account and/or policy when I pass away?" is essential for ensuring proper management of your financial affairs after your passing. Here’s why this question is significant:

  • Clear Authorization: This question helps determine who, besides yourself, has the legal right to access your account information and communicate with the financial institution. Understanding and specifying this can prevent unauthorized access and ensure that only designated individuals can handle your affairs.
  • Setting Up Authorizations: If no one is currently authorized, or if you wish to change existing authorizations, this question guides you through the process of designating someone. It involves providing the necessary details about the authorized individuals, such as their names, relationships to you, and contact information.
  • Streamlining Communications: By clearly identifying authorized individuals, you ensure that the financial institution knows who to communicate with, making the management of your account smoother and more efficient.

  • Reducing Delays and Complications: Having authorized contacts in place can significantly reduce delays and complications in managing the account or policy after your death. It simplifies the process for your heirs and the institution, allowing for quicker resolution of outstanding issues.

  • Documentation and Records: Completing and updating the documentation with names and details of authorized individuals ensures that all records are current and reflect your latest intentions, providing clarity and legal standing for those involved.

Asking "What benefits or entitlements will be available to my designated beneficiaries when I pass away?" is key to ensuring that your legacy is managed according to your wishes. Here’s why this question matters:

  • Identification of Benefits: This question helps clarify what specific benefits or entitlements, if any, are associated with your account or policy. Knowing this allows you to plan effectively for how your assets will be distributed among your beneficiaries.
  • Designation of Recipients: It is crucial to ensure that beneficiaries are properly designated and current. This includes reviewing and updating recipient information as necessary to reflect your current intentions and relationships.
  • Notification of Beneficiaries: Deciding whether to notify beneficiaries about their future entitlements in advance can help prepare them for what to expect and ensure that there are no surprises, facilitating smoother transitions and claims.
  • Understanding Conditions and Criteria: If there are specific conditions or criteria that must be met for the benefits to be disbursed, it is important to understand and communicate these clearly. This might include age restrictions, financial thresholds, or other qualifying factors that affect how and when benefits are allocated.
  • Documentation and Clarity: Completing documentation that lists specific benefits and any associated conditions ensures that all details are clear and legally recorded. This transparency helps prevent disputes and ensures that your wishes are honored accurately.

Frequently Asked Questions

1. What will happen to this account and/or policy when I pass away?

2. Who is authorized to access and communicate with the institution regarding this account and/or policy when I pass away?

3. What benefits or entitlements will be available to my designated beneficiaries when I pass away?

Because every account and policy has its own rules. Some transfer immediately to a beneficiary, while others get stuck in probate. Knowing the answers avoids delays, prevents lost benefits, and gives your loved ones a much smoother experience.

Start with bank accounts, retirement accounts (like IRAs or 401(k)s), life insurance policies, pensions, annuities, and even workplace benefits. If it has a balance, a payout, or a beneficiary, it’s worth reviewing.

That’s great—but some assets bypass your will entirely. For example, accounts with named beneficiaries, joint ownership, or “payable on death” instructions follow their own path. You want all pieces of your plan working together.

Start by contacting the financial institution or insurance provider directly. You can also ask your financial advisor or estate planning attorney for help interpreting account details or confirming legal access.

Write them down and store them with your estate planning documents. Make sure at least one trusted person knows where they are. This info can be a lifeline during a chaotic time. You can download a free Ask Three Questions worksheet as part of our Estate Planning Bundles Template.

At least every few years—or after major life changes like marriage, divorce, births, deaths, or a move. It’s also smart to check whenever you update your will or beneficiaries.

What if I don’t have a designated beneficiary on an account?

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Disclaimer: The information provided on this website and by Buried in Work is for general informational purposes only and should not be considered legal advice. Please consult with a qualified attorney or subject matter expert for advice specific to your situation.