Adding a beneficiary to your American Express savings account

You can name a beneficiary on your American Express savings account through your online account dashboard or by calling American Express Bank customer service. A beneficiary is someone who receives the money in your account if you die. American Express allows you to name one or more beneficiaries and specify what percentage of the account each person receives.

The process takes about 10 to 15 minutes if you do it online, or longer if you call and wait for a representative. You will need the beneficiary's full legal name, date of birth, and Social Security number or tax ID. American Express does not charge a fee to add or change a beneficiary.

Naming a beneficiary means the money passes directly to that person outside of probate — the court process that normally distributes a dead person's assets. This is faster and simpler than leaving the account to someone in a will, though a will can override a beneficiary designation if you later change your mind.

Key Takeaways

  • You can add a beneficiary online through your American Express account or by phone, and the process takes 10 to 15 minutes.
  • You will need your beneficiary's full legal name, date of birth, and Social Security number or tax ID before you start.
  • Money left to a beneficiary passes directly to them and does not go through probate, which saves time and court costs.
  • You can name more than one beneficiary and decide what percentage of the account each person receives.
  • American Express allows you to change or remove a beneficiary at any time, and the change takes effect immediately.

How to add a beneficiary online

Log into your American Express Bank account on the website or mobile app. Look for a settings or account management section — this is usually found under your profile icon or in a menu labeled "Account" or "Settings." Search for the word "beneficiary" or look for a section called "Beneficiary Designation" or "Transfer on Death."

Click the option to add a beneficiary. You will be asked to enter the beneficiary's full legal name exactly as it appears on their birth certificate or government ID, their date of birth, and their Social Security number. If the beneficiary is a business or trust rather than a person, you may need to provide a tax ID instead.

Specify what percentage of the account the beneficiary receives. If you name more than one beneficiary, the percentages must add up to 100 percent. For example, you could leave 50 percent to your spouse and 50 percent to your adult child, or 100 percent to one person.

Review the information you entered and confirm the addition. American Express will send you a confirmation email with the beneficiary details. The beneficiary designation takes effect immediately, though the actual transfer of money only happens after you die and the account is closed.

Adding a beneficiary by phone

Call American Express Bank customer service at the number on the back of your savings account card or statement. Tell the representative you want to add a beneficiary to your savings account. Have the beneficiary's full legal name, date of birth, and Social Security number ready before you call.

The representative will ask you to confirm your identity by providing your account number and possibly other personal information. They will then record the beneficiary information and read it back to you to make sure it is correct. Ask the representative to send you a written confirmation of the beneficiary designation.

The phone process usually takes 15 to 20 minutes, depending on how busy the customer service line is. You may wait on hold before speaking to someone. If you prefer not to wait, you can use the online method instead, which does not require a phone call.

What information you need before you start

Gather the following details about your beneficiary before you begin the process: their full legal name as it appears on their government ID, their date of birth, and their Social Security number. If you do not have the Social Security number, you can sometimes use a tax ID or employer ID number instead, but American Express will tell you if that is not acceptable.

If you want to name more than one beneficiary, collect this information for each person. You will also need to decide what percentage of the account each beneficiary receives. Write this down before you start so you do not have to calculate it while you are in the middle of the process.

If your beneficiary lives outside the United States, you may need additional information such as a passport number or foreign tax ID. Call American Express Bank before you start to ask what documents they need for an international beneficiary.

Changing or removing a beneficiary

You can change your beneficiary designation at any time through the same online dashboard or by calling customer service. Log into your account, find the beneficiary section, and click the option to edit or remove the current beneficiary. Enter the new beneficiary's information or delete the existing one.

If you remove a beneficiary without naming a new one, the money in your account will be distributed according to your will or, if you do not have a will, according to your state's inheritance laws. This process is slower and more expensive than having a named beneficiary, because it goes through probate.

Changes to your beneficiary take effect immediately. American Express will send you a confirmation email. If you are changing a beneficiary because of a divorce or major life change, make sure to update your beneficiary on all of your accounts — banks, retirement accounts, insurance policies, and investment accounts — not just your American Express savings account.

What happens when the account holder dies

When you die, the person or people you named as beneficiary can contact American Express Bank with a copy of your death certificate. American Express will verify that the person is the named beneficiary and begin the process of transferring the money. This usually takes one to two weeks, though it can take longer if the estate is complicated or if there are legal disputes.

The beneficiary does not have to go through probate court to receive the money, which means they can access it faster than if you had left the account to them in a will. However, if you owe money to creditors or the government, those debts may be paid from the account before the beneficiary receives anything. American Express will handle this process.

If you named more than one beneficiary, American Express will divide the account according to the percentages you specified. For example, if you left 60 percent to your spouse and 40 percent to your child, American Express will calculate those amounts and transfer them separately.

Beneficiary designation vs. a will or trust

A beneficiary designation on your American Express savings account is separate from your will or trust. The beneficiary designation takes priority, which means the money goes to the person you named as beneficiary even if your will says something different. This is why it is important to keep your beneficiary designation up to date whenever your life changes.

If you have a trust, you can name the trust as your beneficiary instead of naming individual people. This can be useful if you want the money to be managed by a trustee for minor children or if you want to control how the money is distributed after you die. Talk to a lawyer or financial advisor about whether naming a trust makes sense for your situation.

If you do not name a beneficiary, the money in your account becomes part of your estate and is distributed according to your will or your state's laws. This process takes longer and costs more because it goes through probate court. Naming a beneficiary is a simple way to avoid probate for at least part of your assets.

Frequently Asked Questions

Can I name my minor child as a beneficiary?

Yes, you can name a minor as a beneficiary, but the money cannot be given directly to them. When you die, a court will appoint a guardian to manage the money until the child turns 18 or 21, depending on your state. To avoid this, you can name a trust as your beneficiary instead, or name an adult and ask them in your will to use the money for the child's benefit.

What if I want to change my beneficiary after I get divorced?

You can change your beneficiary at any time through your online account or by calling American Express. Do this as soon as possible after your divorce is final. If you do not update your beneficiary, your ex-spouse may still receive the money when you die, even if your divorce decree says otherwise. Divorce does not automatically remove someone as a beneficiary.

Can I name a charity or organization as a beneficiary?

Yes, you can name a charity, nonprofit, or other organization as a beneficiary. You will need to provide their tax ID number instead of a Social Security number. Make sure you have the organization's legal name exactly right, because the money will go to that specific entity.

What if my beneficiary dies before I do?

If your named beneficiary dies before you, the money does not automatically go to their children or spouse. Instead, it becomes part of your estate and is distributed according to your will or your state's laws. You should update your beneficiary designation as soon as you learn that your beneficiary has died.

Does naming a beneficiary affect my taxes?

Naming a beneficiary does not create a tax event for you while you are alive. When you die, the beneficiary may owe federal estate tax if your total estate is large enough, but this depends on the value of everything you own, not just the American Express account. Talk to a tax professional or lawyer about whether estate tax will apply to your situation.