Did you know that your heirs are not necessarily the beneficiaries of your bank accounts?
Although there are different forms for a Last Will and Testament, the most common form is the Open Public Last Will and Testament, which is prepared and certified by a Notary Public so that the estate assets of the decedent are made available. Once signed, the Last Will and Testament is put on record in order to thereupon evidence the intended allocation of the assets.
There is also the Legacy form, which can bequeath a person (the legatee) the ownership of one or more assets.
Whether it is by means of a Testament, or Legacy, the estate is made available, either in its entirety or only in part, but, in both cases, includes bank accounts.
With regard to these, appointing someone as the preferred or favored designee with the banking institution does not make him/her a legatee, but rather a beneficiary. Article 56 of the Credit Institutions Act (Ley de Instituciones de Crédito, or LIC by its acronym, in Spanish) points out that holders of bank accounts, loans and credit must determine who will be those beneficiaries who, in case of death, may receive the amount thereof, and for which it is mandatory they be designated, expressly and in writing, and in the proportion the former desires they benefit.
Due to the express provision, the credit institution will only pay out the existing cash in those accounts to the beneficiary whose name is reflected in the respective contract, regardless of what the Last Will and Testament may indicate regarding heirs to the bank accounts.
Additionally, if accounts are dormant, lending institutions will pay out the funds to a public welfare/charity. This is a situation that should not be ignored - therefore, upon the demise of the account holder, as beneficiary it is important to claim payment of the capital deposited in the accounts. Nevertheless, in order for the above to happen, the account must be dormant for more than six years and is divided into two phases.
In the first phase, after three years the bank gives notice to the account holder by sending such notice to his/her domicile 90 days prior to the funds being transferred to a Bank cuenta concentradora (concentration or centralizing account). Should there be no response to such notice and another three years are allowed to transpire from the date the funds were deposited into the cuenta concentradora, and without these funds being claimed or being dormant, the money shall be paid out to the public welfare/charity, provided such funds do not exceed an amount equivalent to 300 days’ legal minimum wage in the Federal District (Article 61 of the Credit Institutions Act, or its acronym LIC, in Spanish).
Since for obvious reasons the notice presented at the domicile of the deceased will not be very effective, it is recommended, in a verifiable manner, to inform such to the account beneficiaries, in order that they are able to claim their corresponding amount.
Source: http://www.idconline.com.mx/
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