When Financial Accounts “Go Missing”

The U.S. Treasury has instituted a program to locate owners of U.S. savings bonds that are lost or expired. Bank accounts sometimes suffer the same fate as “lost” savings bonds, although these days, the IRS matches tax information on depositors furnished by banks with interest shown on tax returns. So the bank might hear from the IRS and discover the owner’s identity. However, you should make a record of all your bank deposits and financial holdings and give the information to your executor, storing a copy with your will.

Joint checking or savings accounts are another way to avoid “losing” an account. Typically, the surviving joint owner becomes the sole owner of a joint account. The transfer to the surviving joint owner doesn’t require a will, and the probate process is avoided as well. Several types of joint accounts are available. Decide what financial goals you want to accomplish and then talk with your banker about the different deposit agreements that are offered.

If your aim is simply to pass the bank account to another at death, you can do so without resorting to a joint account. Most areas permit P.O.D. (payable on death) accounts. Depositors generally may indicate that their deposits be “P.O.D.” to a particular person or charity. The P.O.D. designation can be revoked at any time and in no way affects your control over the deposit. In some areas, these arrangements are set up as “self-declaration trusts” (check with your banker).

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