The Payable On Death (POD) role is a simple yet powerful way to manage your assets and enjoy peace of mind at Royal Credit Union. By designating a POD beneficiary, you ensure that your funds are transferred directly to the person or entity of your choice upon your passing, bypassing the need for a will or probate.
Adding A Payable On Death Beneficiary
Adding or removing POD beneficiaries can be done at any time for most accounts. To add a POD, we require the beneficiary’s full name, address, phone number, date of birth, and the percentage of funds they are to receive. Social security numbers are optional but preferred for identification purposes. All account owners must sign Royal’s POD form to complete the designation.
More Information About Payable On Death Roles
Having a POD designation on your accounts is optional but highly recommended. Without a POD, funds typically become part of the account owner’s estate upon death. For joint accounts, the funds remain with the surviving owner(s) until the last owner’s death, at which point they transfer to the POD beneficiary.
The transfer to the POD person or entity is straightforward and does not require consultation of a will or probate process. POD designations take precedence over wills and marital property agreements.
Account owners may specify both primary and contingent PODs, ensuring that their wishes are fulfilled even if the primary beneficiary is no longer alive. They can also designate multiple PODs and specify the share each should receive.
Special Considerations For POD Beneficiaries
- PODs can be organizations, such as churches, foundations, or nonprofits.
- If a POD beneficiary is a minor, funds are managed by a guardian until they come of age.
- Royal Credit Union does not inform PODs of their designation until necessary. PODs do not need to sign anything to accept a role as a POD beneficiary.
- PODs differ from Financial Power Of Attorney (POA), which ceases upon the grantor's death and does not allow for account access after death.
Exclusions For Payable On Death Roles
Certain accounts and products, like safe deposit boxes and trust accounts, are ineligible for POD designations. Additionally, IRA and HSA beneficiaries are subject to different regulations and require additional information.
Conclusion
Designating a Payable On Death beneficiary is a responsible step in managing your financial legacy. It provides peace of mind, knowing that your assets will be transferred according to your wishes, efficiently and without legal complications. For more detailed guidance, we recommend consulting with an attorney to align your POD designations with your overall estate plan.
Learn more about estate planning from Royal's Money Donuts® podcast. Watch or listen to the episode Estate Planning & Your Accounts.
Content provided for general informational purposes only; content does not and is not intended to constitute legal advice. Content may not constitute the most up-to-date legal information. No one should make a Payable On Death designation without first contacting an attorney to obtain legal counsel applicable to their particular situation and jurisdiction.
