A Comprehensive Guide to Changing Beneficiaries on Your Ally Bank Account
Ever wonder what would happen to your hard-earned money in your Ally Bank account if something unexpected were to occur? It's a question we often put off, but designating beneficiaries is a crucial step in ensuring your financial wishes are honored. And just as life changes, so too can your beneficiaries! Perhaps you've had a significant life event – a marriage, a divorce, the birth of a child, or simply a re-evaluation of your estate plan. Whatever the reason, updating your beneficiaries on your Ally Bank account is a straightforward process that offers immense peace of mind.
Are you ready to take control of your financial future and make sure your loved ones are protected? Let's dive into the step-by-step guide on how to change beneficiaries on your Ally Bank account.
Understanding Beneficiaries at Ally Bank
Before we get into the "how-to," it's important to understand the different types of accounts and how beneficiaries apply. Ally Bank differentiates between regular checking, savings, and CD accounts, and Individual Retirement Accounts (IRAs), as the processes and requirements can vary slightly.
Checking, Savings, and CD Accounts (Payable on Death - POD): For these accounts, you can designate "Payable on Death" (POD) beneficiaries. This means that upon your passing, the funds in the account will directly go to the named beneficiaries, bypassing the probate process. This can be a significant advantage, as it allows for quicker access to funds for your loved ones.
Individual Retirement Accounts (IRAs): IRAs have specific rules regarding beneficiaries due to their tax-advantaged nature. You'll typically designate primary and, in some cases, contingent beneficiaries. It's especially important to consider the tax implications and consult with a tax professional when designating IRA beneficiaries.
Step 1: Identify the Type of Ally Account You Need to Update
Is it a regular checking, savings, or CD account?
Is it an Individual Retirement Account (IRA)?
Do you also have Ally Invest accounts? (Note: Ally Invest accounts, like brokerage or self-directed IRAs, have a slightly different process and forms.)
Knowing this upfront will streamline your journey.
Step 2: Gather Necessary Information for Your Beneficiaries
Before you begin the online or form-based process, make sure you have all the pertinent details for your new (or existing, if you're just updating) beneficiaries. Having this information readily available will make the process much smoother and prevent you from having to stop midway.
Sub-heading: Information for Individuals
For each individual beneficiary you wish to add or update, you'll generally need:
Full Legal Name: Ensure it matches their government-issued ID.
Date of Birth
Social Security Number (SSN) or Tax ID Number (TIN): This is crucial for identification and IRS reporting purposes.
Current Residential Address: No P.O. Boxes.
Relationship to You: (e.g., Spouse, Child, Sibling, Friend)
Contact Information: Phone number and/or email address are often helpful but may not be strictly required for beneficiary designation itself.
Sub-heading: Information for Trusts, Charities, or Other Entities
If you're designating a trust, charity, or other organization as a beneficiary, you'll typically need:
Full Legal Name of the Trust/Organization
Tax ID Number (TIN) or Employer Identification Number (EIN)
Date of Trust Establishment (if applicable)
Full Legal Names of Trustees (for a trust)
Official Address of the Trust/Organization
Relevant Trust Documents: For trusts, Ally Bank may require a copy of the trust document or specific pages from it to verify its existence and the trustee's authority.
Step 3: Accessing the Beneficiary Management Section
Ally Bank offers a convenient online method for managing beneficiaries for most bank accounts.
Sub-heading: For Ally Bank Checking, Savings, or CD Accounts
Log in to your Ally Bank account: Go to
ally.comand securely log in using your credentials.Navigate to Profile and Settings: Once logged in, look for a section or menu option typically labeled "Profile and Settings" or "Settings."
Select "Beneficiaries": Within the Profile and Settings menu, you should find an option specifically for "Beneficiaries." Click on this.
Add, Edit, or Remove Beneficiaries:
To Add a New Beneficiary: Select "Add Beneficiary" and follow the prompts to input the required information.
To Update an Existing Beneficiary: Look for an "Edit" icon (often a pencil) next to the beneficiary's name. Click it to modify their details.
To Remove a Beneficiary: There will usually be a "Remove" or "Delete" icon (often a trash can) next to the beneficiary's name. Be cautious when removing beneficiaries and double-check your selection.
Important Note: For checking, savings, and CD accounts, you can usually only add one beneficiary at a time. Also, Ally Bank currently does not have primary or contingent designations for these account types; all designated beneficiaries will receive an equal share unless otherwise specified (which may require a form).
Sub-heading: For Ally Bank Individual Retirement Accounts (IRAs)
The process for IRAs is slightly different and often involves a dedicated form.
Log in to your Ally Bank account: Go to
ally.comand securely log in.Select Your IRA Plan: Navigate to your specific IRA account or plan.
Choose "Beneficiaries": Look for a "Beneficiaries" section within your IRA account details.
Complete the IRA Beneficiary Designation Form (PDF): Ally Bank typically requires a physical or digitally signed PDF form for IRA beneficiary changes. You can usually download this form directly from their website within the beneficiary section or by searching their help center.
This form will allow you to designate primary and contingent beneficiaries and specify percentages.
Submit the Form: Once completed and signed, you'll need to submit the form. Ally Bank provides several methods:
Upload Digitally: Log in to your account, go to the forms or secure message section, and upload the completed PDF.
Fax: Fax the form to the provided fax number (e.g., 1-866-699-0563 for Ally Invest IRA accounts).
Mail: Mail the form to the designated address (e.g., Ally Invest, PO Box 30248, Charlotte, NC 28230).
Special Consideration for Married Individuals in Community Property States: If you are married and reside in a community property state, and you wish to designate a primary beneficiary other than or in addition to your spouse, you will likely need to submit a notarized Change of Beneficiary form that includes your spouse's signature. This is a legal requirement to acknowledge their potential community property interest.
Sub-heading: For Ally Invest Accounts (Non-IRA Individual or Joint Accounts)
Similar to IRA accounts, non-IRA Ally Invest accounts generally require a specific form.
Log in to your Ally Invest account: Access your account on
ally.com.Locate the Beneficiary Form (PDF): Search the Ally Invest help center or forms section for the "Beneficiary Form (PDF)."
Complete and Submit the Form: Fill out the form thoroughly and then submit it via:
Upload Digitally: Through the forms section after logging in.
Fax: To the specified fax number (e.g., 1-866-699-0563).
Mail: To the Ally Invest mailing address (e.g., Ally Invest, PO Box 30248, Charlotte, NC 28230).
Step 4: Review and Confirm
Once you've entered all the beneficiary information or submitted the necessary forms, take a moment to carefully review everything.
Sub-heading: Double-Check for Accuracy
Are all names spelled correctly?
Are the dates of birth accurate?
Are Social Security Numbers/Tax IDs correct?
For IRAs, are the percentages allocated correctly and do they total 100%?
If you mailed or faxed a form, did you sign it where required?
Sub-heading: Confirmation from Ally Bank
After making changes online, you should receive an immediate confirmation of your updates. If you submitted a form via mail or fax, it might take a few business days for Ally Bank to process the request. They typically send a confirmation notification once the changes are applied. If you don't hear back within a reasonable timeframe, don't hesitate to contact their customer service.
Step 5: Keep Records Updated
Changing your beneficiaries isn't a one-and-done task. Life is dynamic, and your beneficiary designations should reflect your current wishes.
Sub-heading: Store Important Documents
Keep copies of all submitted forms: Whether printed or digital, ensure you have a record of the beneficiary forms you've filled out and sent to Ally Bank.
Note the date of your changes: This helps you track when the updates were made.
Sub-heading: Periodic Review
Review your beneficiaries annually: It's a good practice to revisit your beneficiary designations on all your accounts (not just Ally Bank) at least once a year, or after any major life event (marriage, divorce, birth/adoption of a child, death of a beneficiary, etc.). This ensures your plans remain aligned with your intentions.
Frequently Asked Questions (FAQs)
Here are 10 common questions related to changing beneficiaries on Ally Bank accounts:
How to check my current beneficiaries on Ally Bank?
You can typically check your current beneficiaries by logging into your Ally Bank account online, navigating to "Profile and Settings," and then selecting "Beneficiaries." For IRAs, you'd usually find this under your specific IRA plan details.
How to add multiple beneficiaries to an Ally Bank account?
For checking, savings, and CD accounts, you can add multiple beneficiaries online by repeatedly using the "Add Beneficiary" option. For IRA and Ally Invest accounts, the PDF forms allow you to list multiple primary and contingent beneficiaries.
How to remove a beneficiary from my Ally Bank account?
For checking, savings, and CD accounts, you can remove a beneficiary online by clicking the "Remove" or "Delete" icon next to their name in the "Beneficiaries" section of "Profile and Settings." For IRA and Ally Invest accounts, you'll need to submit an updated beneficiary designation form indicating the removal.
How to designate primary and contingent beneficiaries on Ally Bank?
Primary and contingent beneficiaries are primarily designated for Ally Bank IRA and Ally Invest accounts through their specific PDF beneficiary designation forms. Regular checking, savings, and CD accounts typically do not have this distinction.
How to change beneficiary if I live in a community property state and am married?
If you are married and live in a community property state, and wish to name a primary beneficiary other than or in addition to your spouse for an IRA account, you will need to submit a notarized Change of Beneficiary form that includes your spouse's signature.
How to find the correct beneficiary form for Ally Invest accounts?
You can find the correct beneficiary form for Ally Invest accounts (non-IRA and IRA) by searching the "Forms" or "Help Center" section on the Ally Invest website after logging in, or by contacting their customer service.
How to submit beneficiary forms to Ally Bank?
Ally Bank allows submission of beneficiary forms via digital upload through their secure message or forms section online, by fax, or by mail to their designated addresses.
How to ensure my beneficiary changes are processed correctly by Ally Bank?
Always review the confirmation after making online changes. If submitting forms, keep copies for your records and follow up with Ally Bank customer service if you don't receive a confirmation within a reasonable timeframe (typically a few business days).
How to designate a trust as a beneficiary on an Ally Bank account?
To designate a trust as a beneficiary, you'll need the full legal name of the trust, its Tax ID Number (TIN) or EIN, the date of establishment, and potentially copies of the trust documents, especially for IRA or Ally Invest accounts.
How to get help if I have trouble changing beneficiaries on my Ally Bank account?
If you encounter any difficulties, the best course of action is to contact Ally Bank's customer service directly. Their phone number is typically 1-877-247-2559, and they are also available via secure message within your online account.
