Does Monzo support naming a beneficiary to receive the balance of an account in the event of the account holder’s death?
As my spouse and I organize and document our financials during the pandemic, it occurs to me that it may be difficult for her to get the money in my Monzo current account if I were to die (or vice versa). A named beneficiary would make this a simple process.
In the US, financial accounts typically have a Payable On Death beneficiary named on each account. This supersedes any beneficiaries named in the deceased’s will. I’m not sure if there is a similar practice in the UK or if that’s left entirely to the will and probate process.
We’ll close the joint account if one person on the account has died
If you’re the other person on the joint account, we’ll reach out to let you know we plan to do this. You’ll have a month to move any money into a personal account, and switch over any Direct Debits or standing orders.
If the person who’s died was a crowdfunding investor, you’ll need to contact Crowdcube to discuss their shares in Monzo.
Just a minor additional point. Lots of people set up a joint account in this situation, even if the joint account is actually just used by one person. The reason being that funds in a joint account immediately pass to [Edit: are held by] the other account holder when one dies, so they at least have say £1k-£2k for immediate expenses.
Plus, if you’ve set up house bills from the account, it’s just much easier to manage those - you don’t need to do anything immediately.
Might not suit your situation, but is maybe something to think about.
I realise I may be being a bit picky here, but: the whole point of a joint account is this situation is that the funds don’t need to pass to the other account holder, because they already own them.
It’s the same with houses, many couples will have the house in joint ownership so that if one dies the other doesn’t need to go through a complicated process for taking over ownership of the house (with the possible tax costs that may involve, amonst others).