Forms known as Designated Beneficiary Agreements (DBA) are common to a variety of financial instruments, such as retirement accounts, life insurance policies, bank accounts, stocks, annuities, etc. Intended to provide a speedy way to bypass the probate process, they may actually thwart the intentions of the account holder if not timely updated, especially after life events, such as births or marriages. Here’s a real life example of how a DBA agreement cost one family much heartache—and $400k.
Pensions and Benefits USA maintains DBAs for many ministers for their 403(b) accounts, life insurance, death benefit, accidental death and dismemberment, and IRAs. These important documents should be reviewed annually and updated as needed. An update simply involves completing an online form, signing it, and mailing it to us. DBA forms for the programs we provide may be found here.