Why would my attorney recommend a payable on death account? (part two)
Ask the LDA
May 14, 2022
The are some drawbacks with POD account, of course.
You can't name an alternate or contingent beneficiary. If the person you name predeceases you, that account will likely transfer to the estate. Then it will likely go through probate.
POD accounts may result in issues regarding paying taxes, debts and other expenses of the estate. It gets messy if the executor of your estate is not the beneficiary of the account. The executor is the person in charge of paying those debts and administering the estate.
If the beneficiary cannot be found or does not want to take ownership of the account, it becomes quite complicated too.
A POD is a good way to avoid probate. The original account owner bypasses probate and the account become the property of the beneficiary. A POD is also easy to access and gain control of the account. Just show a death certificate and some identification, fill out the bank's form and you have access to the account.
Diana Wade is a Legal Document Assistant. She can be reached at (661) 821-0494 or firstname.lastname@example.org. Diana is not an attorney; she can only provide self-help services at your specific direction. Kern County LDA #185, ex 4/11/23.