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POD Bank account - forfeiting acount / paying debts?

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nfh1981

Junior Member
What is the name of your state (only U.S. law)? Wisconsin

First off, I apologize for the confusing title - hopefully it will make sense shortly.

1) My father passed way some time ago, and between burial expenses and past IRS taxes, his estate is in debt. He had more debt than the sum total of his bank accounts.

2) On one of these bank accounts, ( a small account - just over $1,000 total ) he listed the hospital that he worked at as the POD beneficiary.

3) This hospital is in TN, but his estate is in WI. Because of the distance, time, and expense of coming to WI to claim it, the hospital has essentially said "thanks, but it's not worth our time".

So my question is: if a POD beneficiary basically forfeits claim to an account, is their a way and process for the estate to use it to pay it's debt?

I understand it was left to the hospital as a nice gesture, and I understand why the hospital doesn't have a desire to claim it. The bank has even said as much, that it happens fairly regularly that someone will try and make a heartfelt gesture by naming a charity as beneficiary, only to have that charity never claim the money.

It just seems silly that the money is destined to sit in an account forever, unclaimed, when the estate itself still has debts to pay.

Thanks to the forum in advance for any help with
 


Zigner

Senior Member, Non-Attorney
What is the name of your state (only U.S. law)? Wisconsin

First off, I apologize for the confusing title - hopefully it will make sense shortly.

1) My father passed way some time ago, and between burial expenses and past IRS taxes, his estate is in debt. He had more debt than the sum total of his bank accounts.

2) On one of these bank accounts, ( a small account - just over $1,000 total ) he listed the hospital that he worked at as the POD beneficiary.

3) This hospital is in TN, but his estate is in WI. Because of the distance, time, and expense of coming to WI to claim it, the hospital has essentially said "thanks, but it's not worth our time".

So my question is: if a POD beneficiary basically forfeits claim to an account, is their a way and process for the estate to use it to pay it's debt?

I understand it was left to the hospital as a nice gesture, and I understand why the hospital doesn't have a desire to claim it. The bank has even said as much, that it happens fairly regularly that someone will try and make a heartfelt gesture by naming a charity as beneficiary, only to have that charity never claim the money.

It just seems silly that the money is destined to sit in an account forever, unclaimed, when the estate itself still has debts to pay.

Thanks to the forum in advance for any help with
The money belongs to the hospital. If they don't claim it, then it will escheat to the state.
 

nfh1981

Junior Member
When it escheats to the state as unclaimed property, would it be unclaimed property in my father's name, or the hospital's name?
 

Zigner

Senior Member, Non-Attorney
Have you asked that the hospital formally notify the bank of the renunciation?
This is not a renunciation. As a PoD account, once the person died, the beneficiary became owner of the funds. This is simply the owner of funds not taking their funds.
 

anteater

Senior Member
This is not a renunciation. As a PoD account, once the person died, the beneficiary became owner of the funds. This is simply the owner of funds not taking their funds.
Sorry, Zig, but I have to disagree. A POD beneficiary can renounce their beneficiary status in the same way that a beneficiary under a will or an IRA beneficiary can.

Exactly why the OP would want that is a bit of a headscratcher, since he/she seems to state that the funds would only go to other creditors anyway. But, to each his own.
 

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