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Whether due to marriage, divorce or gender transition, changing your name offers a practical and symbolic way to enter a new chapter in your life. But throughout the undertaking, don't forget to update your name on important financial documents and accounts as well. Changing your name on financial documents is a time-consuming process, but it's an essential step to safeguard your identity and finances and prevent future financial headaches.
Why Changing Your Name on Documents Is Important
Neglecting to update your name on financial documents could cause several setbacks, including:
- Denied or delayed credit approval: Mismatched names on your credit application and credit report could cause problems getting approved for credit.
- IRS mixups: The name on your tax return must match Social Security records or your refund could be delayed.
- Difficulty accessing accounts: Different names on your ID and bank account or credit card might prevent you from using the account or card.
- Problems with health care coverage: Health care providers typically require state identification; if yours doesn't match your insurance card, your claim may not be processed.
Documents and Accounts Where Your Name Needs to Be Changed
Here are key places to change your name and how to do it.
Social Security Card
The Social Security Administration should be your first step; you need a current Social Security card for many other name changes. Changing your name with Social Security automatically informs the IRS, preventing problems with taxes. You can generally start the name change process online, but typically need to visit a Social Security office to complete it by showing the required documents.
Driver's License or State ID Card
The process of changing your name on your driver's license or state ID varies from state to state. It generally requires visiting your state's motor vehicle department to show original documents proving your identity. Visit your state government's website for specifics.
Auto Registration and Title
If you get pulled over or want to trade in your car, you'll need to prove it's yours. Visit your state department of motor vehicles website to learn how to update your title and registration.
Bank Accounts
Updating your name on bank accounts typically requires visiting a branch to provide supporting documents. Contact your bank for the documents needed and schedule an appointment.
Credit Cards
Every credit card company has its own name-change procedures, so you'll need to check with each issuer. Some require visiting a bank branch; others let you complete the process by phone or online.
Investment and Retirement Accounts
Investment and retirement accounts should reflect the name on file with the IRS and Social Security Administration. Visit your account's website for directions on how to change your name; you can usually do so online.
Estate Planning Documents
Because a name change typically accompanies a major life change, it's a good time to create or revise your estate plan. Updating your estate planning documents, including your will and living will, with your legal name helps prevent delays in distributing your estate. If you have a living trust whose title includes your name, you must create a new trust and move your assets into it.
Home Title and Mortgage
Your home's deed (or title) should have your legal name. The process for changing the name on a deed depends on your state. Contact your county's department of public records for more information. Update your name with your mortgage company too.
Insurance Policies
Avoid delays in processing claims by contacting your life insurance, disability insurance, home insurance, auto insurance and health insurance carriers to alert them of your name change.
Passport
Visit the U.S. State Department website for more information on how to change the name on your passport; the process varies depending on your situation.
Voter Registration
In states with online voter registration, you can often change your name online. Unless you live in New Hampshire, North Dakota or Wyoming, you can also complete and mail in the National Mail Voter Registration Form. If you're still unsure of the process, contact your state or local election office for instructions.
Personnel Records
Tell your employer about your name change so your W-2 forms, health insurance and other important accounts show your legal name.
Utility Companies
Utility bills are often used as proof of residence, so be sure they reflect your new name. The change process depends on the provider. Some utilities let you change your name online or by phone; others require visiting the office in person.
Beneficiaries, Executors and Powers of Attorney
Are you a beneficiary on someone else's insurance policy or retirement account? Perhaps you're named executor or guardian in a sibling's will or have power of attorney for your parents. Avoid confusion by having your family members update their financial documents with your new name.
Credit Report
Updating your name with credit bureaus usually happens automatically when you inform the Social Security Administration and your credit accounts. A new name doesn't create a new credit history; your former name stays on your credit report as a previous name.
A drastic name change, however, might require some extra steps. For instance, if you got married, gender transitioned and changed your name from Maria Juarez to Mark McCrae, credit bureaus might create a completely new credit report for Mark that doesn't include the credit history you worked hard to establish.
Check your credit report a few months after making changes to ensure everything is accurate and up to date. If your prior name doesn't appear on the report, contact the credit bureau. You may need to ask creditors to move your old account history to your new name.
Other Financial Considerations When Changing Your Name
A fresh name offers the perfect opportunity to revamp your financial habits. Here are some steps to consider:
- Open your own accounts. Are all your credit cards joint accounts or authorized user accounts? Whether you're newly single or just want to establish your independence, apply for your own credit cards.
- Build or rebuild your credit. If your credit history is less than stellar, work on improving it by getting current on overdue accounts, paying bills on time and keeping your credit utilization low.
- Pay down debt. To really celebrate your new name, tackle high-interest credit card balances by consolidating them with a balance transfer card or personal loan. You can also use the debt avalanche or debt snowball method if you don't want to take out new credit.
- Boost your savings. Stash enough cash in an emergency fund to last three months without a paycheck. Save for future goals, like a dream vacation or new car, with a sinking fund.
- Change your passwords. Keep your online presence secure by updating your passwords (or letting a password manager handle it for you).
The Bottom Line
Taking the time to change your name on your Social Security card, bank accounts, credit cards and more may seem like a hassle, but making sure your financial records match up will save you stress in the long run. While you're at it, check your credit score so you know how lenders see you and what kinds of loan terms you qualify for. Signing up for free credit monitoring is another way to protect yourself from unwanted financial surprises, helping to ensure smooth sailing in your new life.