Saturday, April 18, 2015

A Smart Thing to do to Your Bank Account: "Payable on Death" Assignment

Throughout the week, we've addressed some documents that everyone should have, and here's one more thing that I (Rob) was recently made aware of. You can assign a beneficiary to your bank accounts (doesn't cost anything!), should something happen to you. WHY DO THAT? - To keep the bank accounts out of probate. (which ties things up for many months).

WHAT IS "ASSIGNING POD" TO YOUR BANK ACCOUNT?- 
With a payable on death account or paid on death account, you name a beneficiary who gets the account when you die—no probate, no hassle. The person you name has no rights to the money until you die, so you can spend it all or change the beneficiary. When you die, the beneficiary simply needs to show the financial institution your death certificate and his or her identification, and the money is theirs. This works for bank accounts, certificates of deposit and even sizeable brokerage accounts. SOURCE: FORBES
Pros and Cons of Making Your bank account "POD" to someone


For instance, if you're married, you would name your spouse. If you're single you would name the person you would like to handle your estate (always good to name the person you picked as Executor to your estate to prevent problems). 


WHAT ABOUT COMPLICATIONS? - Forbes says that if the POD order on bank accounts goes against the will, then it can cause problems.

BIG BENEFIT -  A small payable on death account (your checking account, for example) can help make sure funds are available immediately for your executor or personal representative to pay for funeral expenses or other immediate cash needs during the estate administration period.

IF YOU HAVE AN ELDERLY PARENT- You should ask them to consider doing what my mom did.
In the case of my mom who passed in December 2013, as my mom aged, my younger brother's name was actually added on the account instead of POD. That made it easier for him as the appointed Executor of her estate to use her checking account to pay the funeral expenses, remaining utility bills, etc.
 
On a POD bank account you retain full ownership of the account until you die, and the Federal Reserve recognizes POD accounts as revocable trusts because you can add or remove beneficiaries at any time.

Read more : http://www.ehow.com/info_8379701_payableondeath-bank-account-vs-trust.html
On a POD bank account you retain full ownership of the account until you die, and the Federal Reserve recognizes POD accounts as revocable trusts because you can add or remove beneficiaries at any time.

Read more : http://www.ehow.com/info_8379701_payableondeath-bank-account-vs-trust.html

Gift/Memorial Suggestions

Several of our friends have lost loved ones (human and pets) and we found that one of the best ways to honor their memory is to give to an animal charity.
What better way to recognize a life of love, than by giving another life a chance for love?
We donate to many animal rescues, but because we volunteer with
DC Weimaraner Rescue and Coast-to-Coast Dachshund Rescue, those are our 2 favorites.
Consider giving the chance of life to a dog or cat.

Great Books by our friends

Great Books by our friends
Check out these great books (yeah, Rob's are in there, too)

About us

We're two married guys who enjoy the simple things in life, especially our dogs. We volunteer for dog rescues, enjoy splitting dinners, exercising, blogging, helping friends and neighbors, ghost investigations, coffee and tea, Tudor history, weather, superheroes, comic books, mystery novels, traveling, 70s and 80s music, classic country, piano, gardening, writing books on ghosts and spirits, architecture, keeping a clean house, cooking simply, and keeping in shape. You'll find tidbits of all of these things on this blog and more.

Tom and Rob Thinking Hard!

Tom and Rob Thinking Hard!
Wondering what home project to do next

Podcast of Rob's 50 min. interview on Paranormal Filler Radio 7/13/14