If you care about what happens to your money after you die, you’ll want to think about who you should designate as a bank account beneficiary.

Having somebody who can quickly access the money in your bank account after you depart is important. If you died unexpectedly and you didn’t designate a beneficiary, your cash could be tied up in a probate court for quite a while.

Depending on your situation, however, it may not be obvious who you should choose as your beneficiary. If you’re struggling with who your beneficiary should be or wondering if you really do need beneficiaries, there are several things you’ll want to keep in mind.

Benefits of having bank account beneficiaries

Designating bank account beneficiaries has quite a few benefits and no significant drawbacks. Here are some of the main advantages.

You have a say in what happens to your money

This is at the heart of why bank account beneficiaries matter. If you have family members who would benefit from the money in your checking and savings accounts, and you want them to have that income promptly after your death, you’ll want to designate one or more of those family members as a beneficiary.

If you want your kids to have your money, and they’re under 18, it’s a good idea to talk to a financial adviser or estate planner about setting up a trust where the funds would be held and managed by a trustee until the minor reaches a specified age.

Even if you don’t have any loved ones that you’d want to receive funds, you still may want a bank account beneficiary. For instance, you could give the honor to a favorite nonprofit. In this case, you would grant the nonprofit — just as you would a family member or friend — as a POD (payable on death) designation.

You may save your heirs time and money

Without designated beneficiaries, it can take a while for a probate judge to sort through who should get what. Even if the probate process goes smoothly and a family member quickly gets the money in your bank accounts, there will likely be costs involved. Once your spouse, kids, uncle, or whomever you hope the money goes to gains access to the funds, several hundred dollars (at least) may need to go toward court fees.

You may avoid family fights

Granted, you may start a family fight when you list your bank account beneficiaries if, for instance, you favor one adult child as a beneficiary over another. Or if you have an ex-spouse as the bank account beneficiary instead of your current spouse. (In other words, you may want to update your bank account beneficiaries occasionally.)

Still, similar to creating a will, designating beneficiaries lets it be known what you want to happen to your money if you were to die. And hopefully, having bank account beneficiaries in place will reduce any potential family friction after you’re gone.

Read more: What happens to credit card debt when you die?

How to choose a bank account beneficiary

Choosing beneficiaries for your bank account is an important decision that can impact how your assets are distributed after your death.

When deciding who to designate, consider the current financial status of potential beneficiaries. Do they need the money for specific purposes such as education, medical expenses, or housing?

Many people choose their spouse as a primary beneficiary, especially if they share finances and financial responsibilities. If you have children, you may also want to designate them as beneficiaries. But it doesn’t have to be limited to immediate household members; anyone you financially support, such as an elderly parent or a grandchild, could be a good candidate for becoming a beneficiary.

How to designate a beneficiary

Designating a bank account beneficiary is simple. You’ll do it when you set up the bank account, either listing the bank account beneficiary on a form, or add them via your online banking platform or mobile app.

If you have trouble finding where to add your beneficiaries, you can always call customer service or visit your bank’s branch. And you can always contact the bank after opening the account to add or change a beneficiary.

You’ll need your beneficiary’s full legal name and probably additional information, such as their mailing address, email, phone number, and Social Security number.

Some states may handle things differently, but typically, you can put as many beneficiaries down as you like. You can also specify the percentage of funds each beneficiary should receive, but must ensure that the total adds up to 100%. For example, say you wanted to put your spouse and your sister down as beneficiaries. You could choose to split their funds 50/50, or select different proportions, like 60/40.

Bank account beneficiary rules

Bank account beneficiary rules are typically a combination of what your financial institution allows and state laws. Here are a few guidelines to keep in mind:

• There is no rule that says you have to have a bank account beneficiary, though it’s highly recommended.

• Bank forms don’t always ask for a beneficiary; you may need to contact your bank to add a beneficiary.

• In order for the beneficiary to get their money, they will likely need to first furnish the account holder’s death certificate.

• If the account is overdrawn at the time of your death, there won’t be any funds to give to beneficiaries. On the bright side, your beneficiary won’t be responsible for making the account current.

Bank account beneficiary vs. will

It may seem like designating a beneficiary could replace the need for a will, but it really isn’t a substitute for a good estate plan. For instance, a bank account beneficiary doesn’t determine who should get a house or a car, or how your other assets should be distributed.

Life is often complicated, and if you own a lot of assets beyond the money in your bank accounts, you probably also need a will.

If you put together a will, you’ll also want to make sure that if you list a bank account beneficiary in the will, it should be the same as the name you’ve given your bank. If you want to replace that person at any point, that’s fine, but make the change with your bank, too. If the names are different, the bank account beneficiary will generally be the recipient of the funds and not who you named in the will.