What is a POD Account?
POD accounts are a simple way to provide for quick and easy access to your bank accounts in the event of your death. Also known as payable on death accounts or Totten trusts, the service is free and available at a number of banks, credit unions and savings and loan institutions. Setting up a POD account is one way of ensuring funds that are needed to take care of immediate expenses can be accessed without waiting for wills to be probated and assets to be released. Setting up a payable on death account involves designating a beneficiary. The process involves requesting that a POD account be set up with your local banking institution. In most cases, there is no cost associated with this procedure. All that is required is that you fill out a simple form, identify the bank accounts you wish to have tied to the POD account, provide the name and contact information for the beneficiary, and add your signature to the form. In the event of the death, the beneficiary will have full access to any
• A POD (payable on death) account is the property of and is payable to one person during his or her lifetime, and to one or more POD payees upon that person’s death. Or, it may be payable to more than one person during their life-times and then payable to one or more payees upon the death of all of the owners. • Example: James wants to provide cash support. to his nephew, Charles after his death but doesn’t want Charles to have access to any of his funds while he (James) is still alive. He establishes a POD account naming Charles as the payee. During James’ lifetime. he has complete access to the money and upon his death, the account is payable on request to Charles.
