Listen up! We just released a brand-new episode of Money & Taxes from Bb to XYZ where Jason and Regina talk legal names. Check out “What’s In a (Legal) Name?” on our website or on your favorite podcast app!

When it comes to your name, let’s start with the basics. Unless you’ve legally changed it, your legal name is the one listed on your birth certificate. Many people update their legal name due to marriage, but there are plenty of other reasons. This legal name should appear consistently across official documents, including your Social Security card, driver’s license, tax returns, passport, and voter registration, among others. 

Why does your legal name matter to us here at FPFoCo? In addition to using it properly on your tax returns, it’s the name we include on your financial accounts, of course! Plus, your legal name should be used on your estate planning documents to avoid any type of confusion when the time comes to execute them.

If you’ve changed your legal name due to marriage, after a divorce, to align with your gender identity, following adoption, as part of recovery from trauma, or for any other reason, updating documents and accounts with your new name is a critical step. This not only ensures the accuracy of your financial records but also helps prevent complications with your credit, taxes, and identification verification processes. 

I’m not going to lie: After I finished this process when I got married 15 years ago, I swore I would never do it again! In an attempt to ease the process for you, I’ll review how you can go about legally changing your name. 

Going by a Name vs. Legally Changing It

It’s totally fine to go by a nickname or preferred name with friends, family, and your barista. But when it comes to official paperwork, you should list your legal name. This ensures that any identification checks, verifications, or background checks match your legally recognized identity. Using your legal name on all official paperwork minimizes confusion and helps keep your records unified. (Tip: If you’ve hyphenated your last name, note that the Social Security Administration won’t include the hyphen on your card, but a space does the trick just fine!)

Why It’s Important to Update Your Name with Financial Services

Updating your name across financial services is more than a formality. It’s vital for ensuring smooth account access, accurate tax reporting, and proper identity verification. Financial institutions rely on exact name matching for security. For instance, if you’ve used a nickname, mismatches can cause verification issues and may even block account access. DocuSign and other verification services use Knowledge-Based Authentication (KBA), so name discrepancies may cause verification failures by pulling incorrect information from your credit history.

Additionally, the Internal Revenue Service (IRS) requires that your name on tax filings matches what’s registered with the Social Security Administration (SSA). Otherwise, tax return processing or refunds could be delayed. An updated name is also essential for maintaining a consistent credit history. Failing to update credit bureaus may lead to duplicate records or a fragmented credit history, complicating future credit applications. 

Ensuring that all your financial records reflect your new name minimizes these potential disruptions, maintaining the accuracy and integrity of your financial profile.

Steps to Update Your Name Across Financial Services

Have you used a nickname or found your name listed incorrectly on accounts or important documents? Legally changed your name and need to update it? Just want to make sure your name appears correctly throughout your legal and financial life for consistency? 

Whatever the case, there are steps you can take to ensure that your name is being used properly. I’ll outline how you can update your name if you’ve changed it. If you’ve found an inconsistency in how your name is used or simply want to review your own documents, just follow along! 

1. Social Security

Start with the SSA by filling out the SS-5 form for a new Social Security card. You’ll need supporting documents, like your name change certificate or court order, and a government-issued photo ID. SSA changes can take up to 10 days to process, but this is a foundational step as other institutions reference the SSA for validation. (Yes, it’s a little legwork, but starting here makes every other step easier!)

2. Driver’s license or state ID

After updating your Social Security card, visit your local Department of Motor Vehicles (DMV) with similar documentation. Since your driver’s license is a primary form of identification, updating it will also simplify your process with other institutions. Most DMVs now allow for appointments and it is totally worth saving yourself potentially hours of waiting. You may also take this opportunity to update your vehicle title and registration.

3. Bank(s)

Once you have updated your primary identification documents, bring them to your bank. Each bank’s requirements vary, but most require in-person account titling updates with proof of your new legal name. Make sure to request updated checks and debit/credit cards, and use your statements to verify that the changes properly reflect your new name.

4. Credit card companies

Notify credit card companies individually, as each will have a unique process. Typically, they will request a copy of your updated ID or name change documentation. This step is important to maintain accurate and unified credit reporting.

5. Loan servicers

If you have a mortgage, auto loan, student loans, or other loans, update your records with each servicer. This step will ensure your name is consistent in the event of future refinancing or account inquiries.

6. Investment accounts

Notify your brokerage or retirement account providers — like your 401(k), IRA, or taxable account — to avoid any name mismatch that could delay access to your funds in the future. These providers may require copies of updated IDs and legal name change documents. Also, make sure any accounts where you are listed as a beneficiary are updated, too. 

Pro tip: As an ongoing implementation support client, we’ll assist you with these so you don’t have to go it alone.

7. Insurance policies

Contact your health, life, disability, long-term care, and property insurance providers to update your name. This is particularly crucial to avoid confusion in case of claims. 

8. Employer and payroll

Notify your employer or payroll provider to update your name in their system for accurate human resources changes as well as tax filings and payroll records. This can help prevent errors with your employee benefits as well as tax withholding and Social Security reporting.

9. Estate documents   

Update your estate planning documents — including your will, trust, and powers of attorney — to reflect your new legal name. Do your best to ensure that anyone listing you as a beneficiary updates their records, too.

If you’re legally changing your name, updating it across all of your documents, accounts, and financial services is essential to avoid future issues. Using a systematic approach can keep your financial records consistent and ensure your accounts accurately reflect your original or new legal name. This preparation can help avoid confusion, maintain credit continuity, and ensure your financial identity is secure. 

And the good news? Once everything’s updated, you’ll have the satisfaction of knowing your financial records are as official as your name!