Understand Limitations of POD Accounts
April 20, 2012 By Frank & Kraft, Attorneys at Law
There are some rather simple tools that can be utilized to arrange for the transfer of assets to your loved ones, and perhaps the simplest would be payable on death or transfer on death accounts. These accounts are offered at banks or savings and loans and at many brokerages. As the name implies, the accounts become payable or transferable at death.
You name a beneficiary when you are opening the account. After you pass away, the resources that are left in the account will be transferred to the beneficiary directly.
The above sounds well and good, but there are difficulties that go along with payable on death accounts. For one thing, there is no incapacity provision. So if you were to become incapacitated and unable to handle your affairs your beneficiary would not have direct access to the funds.
Another thing to consider would be balancing inheritances. Some institutions will allow you to add more than one beneficiary. However, in cases when you can add multiple beneficiaries you may be required to allow for an equal split and this may not be the way that you would ideally like to distribute the assets in the account.
Sometimes the easy way can be attractive on some levels, but the truth is that it is not always the best way. To devise a comprehensive estate plan that leads to the realization of your wishes without limitations take action right now to set up a consultation with a licensed and experienced Indianapolis estate planning lawyer.
ABOUT THE AUTHOR: Paul Kraft
Experienced estate planning attorneys Indianapolis IN of the Frank & Kraft Attorneys at Law offers estate planning and business planning resources to residents of Indianapolis IN.
Copyright Frank & Kraft, Attorneys at Law
More information about Frank & Kraft, Attorneys at Law
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
The above sounds well and good, but there are difficulties that go along with payable on death accounts. For one thing, there is no incapacity provision. So if you were to become incapacitated and unable to handle your affairs your beneficiary would not have direct access to the funds.
Another thing to consider would be balancing inheritances. Some institutions will allow you to add more than one beneficiary. However, in cases when you can add multiple beneficiaries you may be required to allow for an equal split and this may not be the way that you would ideally like to distribute the assets in the account.
Sometimes the easy way can be attractive on some levels, but the truth is that it is not always the best way. To devise a comprehensive estate plan that leads to the realization of your wishes without limitations take action right now to set up a consultation with a licensed and experienced Indianapolis estate planning lawyer.
ABOUT THE AUTHOR: Paul Kraft
Experienced estate planning attorneys Indianapolis IN of the Frank & Kraft Attorneys at Law offers estate planning and business planning resources to residents of Indianapolis IN.
Copyright Frank & Kraft, Attorneys at Law
More information about Frank & Kraft, Attorneys at Law
View all articles published by Frank & Kraft, Attorneys at Law
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
