Pod Bank Account

By mary randolph j d.

Pod bank account. The money remaining in the pod account will then be paid to the beneficiaries named by the account owner in the beneficiary designation form on file with the bank. If the fdic insurance is 250 000 per banking account then the pod account will have 250 000 250 000 500 000 instantly guaranteed. The estate without the pod banking account might need to file for bankruptcy. Payable on death bank accounts offer an easy ways to keep money even large sums of it out of probate.

The account owner just goes to the bank and fills out a form identifying the beneficiary the person who will receive the money if the account holder dies. An adult or child can create an account pod and just about anyone can be the beneficiary. The fdic has made the pod designation even more valuable by offering additional coverage for each pod named. People who opt for pod accounts do so to keep their money out of probate court in the event that they pass away.

This works for bank accounts certificates of deposit and even sizeable brokerage accounts at charles schwab for example you fill out a designated beneficiary plan application. A payable on death account or pod account is a financial tool that is commonly used to keep monetary assets out of the probate system. A payable on death pod account is an estate planning tool that provides a way for an individual to pass money to a beneficiary without the necessity of probate when he dies. He can name his beneficiary on the account and she can access the money by presenting the original death certificate to the bank or institution where the account is held.

Pod accounts are sometimes called testamentary or in trust for accounts but these accounts serve the same purpose. It is important to understand that the bank account will pass to the pod beneficiaries even if the pod account owner had a last will and testament or revocable living trust and regardless of what the will or trust says. Putting a pod designation on a bank account is simple. A pod payee inherits whatever money is in the account at your death and doesn t have to go through probate to claim it all that s required is showing up at the bank with a death certificate and identification.

For a cost of exactly nothing you can add pod beneficiaries to your bank accounts and cds. All you need to do is properly notify your bank of whom you want to inherit the money in the account or certificate of deposit. A pod bank account also known as payable on death allows you to appoint someone to receive the money in the account upon your death.