What are POD accounts?
POD is an acronym for Payable On Death. You can convert almost any account you own today, such as a savings account, checking account, or even an investment account, into a POD account. A POD account simple means that once you pass away, you designate a person to receive the funds in your account. This takes place outside of your Will and does not require court approval (probate).
The primary advantage of a POD account is that the beneficiary will have immediate access to the funds upon presentation of a death certificate without having to go through a probate process. Probating a Will can often times take a year or more to complete. Therefore, there is a rather substantial delay before the beneficiary will be able to access the funds you left them. Setting up a POD account is one of the most efficient estate planning mechanisms you can use to transfer money to a loved one quickly without going through the probate process.
To setup a POD account, you simply have to go to your bank or financial institution where you hold your account and let them know you want to convert your account to a POD account. The institution will ask you to fill out a beneficiary form specifying who you want to give the account to once you pass away. Once you complete the paperwork, you are all set.
Call Gregory Law today to schedule an estate planning strategy meeting so you can protect the ones you love.