POD checking account

[seal]

What is the name of your state ? Ky.
Is someone dies that had a checking account with another family member named POD, is that account part of the deceased persons estate or does it go to only the person named POD ?

 

[BlondiePB]

What is the name of your state ? Ky.
Is someone dies that had a checking account with another family member named POD, is that account part of the deceased persons estate or does it go to only the person named POD ?

The monies go directly to the beneficiary (person named POD). The bank requires an original death certificate of the deceased.

 

[seal]

Thank You !

 

[sinistersister]

Maybe not

seal, all that gitters may not be gold on this one. Whether or not the beneficiary gets all the money depends on other factors as well as the POD statement.

For example, if the beneficiary did not contribute to the account and/or if the deceased had debts, the money in the bank account is not free and clear to the beneficiary until all debts have been paid either from the account or from sale of assets.

I'm guessing this account you speak of was not something the beneficiary contributed to- as a joint account might be- and his/her name was only on it as beneficiary. If it were a joint account there'd be no need for a beneficiary. It would automatically go to a joint owner of the account. But as a beneficiary who is not a joint owner of the account, the account is part of the estate.

Bills and taxes are the main consideration before dividing up the spoils. Nothing that belonged solely to the deceased is up for grabs until the bills and taxes have been paid in full and the probate closed.

 

[seal]

POD accounts

There are no outstanding debts to be paid and all the checks have cleared the bank that were written on this account.
Is a checking account that is POD to a person different than POD CD's ? There were several of those left to each family member and they were not part of the estate. Most of those have already been cashed ( with no problem ) and they went directly to the person named POD . They were not considered part of the estate so why would the POD checking account be part of the estate ?

 

[seniorjudge]

What sinistersister is trying to tell you is that the money may have been held in what is called a constructive trust, meaning there is no written document establishing the trust, but there may be facts that establish it.

As you can suspect, proving such a trust is difficult.

But, for example, if Granny says at Christmas dinner that she put Suzy on her million dollar checking account as POD so after she (Granny) goes, Suzy can just split it up equally among everyone at the table and then Granny falls over dead (knocking the turkey to the floor in the process), there might be a constructive trust and everyone has to go to McDonald's to finish eating.

This kind of thing is done all the time by people trying to avoid going to lawyers and doing all that fancy estate planning stuff. It's quite risky, as you can well imagine.

 

[seal]

Sorry to seem so ' dense' here ( or be so dense ) but if the POD CD's can be cashed , wouldn't the POD checking account be under the same rules ? ( if in fact there are no outstanding bills to be paid. ) It's made out the same way the CD's were. ( the deceased person's name and a family member's name as POD. ) Why would the POD checking account be considered part of the estate and not the POD CD's ?

 

[seniorjudge]

Q: Why would the POD checking account be considered part of the estate and not the POD CD's ?
A: No one said they wouldn't.

 

[seal]

I guess I assumed the bank wouldn't have cashed the POD CD's, if they were supposed to be part of an estate. They knew the person who paid for the CD's had died, since they were being cashed in by the beneficiary.

 

[seniorjudge]

I guess I assumed the bank wouldn't have cashed the POD CD's, if they were supposed to be part of an estate. They knew the person who paid for the CD's had died, since they were being cashed in by the beneficiary.

No. The bank would not necessarily have that knowledge. All they are required to do is follow the law. If someone comes in who is the P on a POD account and presents a death certificate of the account holder, the bank pays out, no questions asked and sorry about your loss, etc.

 

[seal]

Thanks

Ok. Thank you all ( seniorjudge, BlondiePB & sinistersister ) for your help with my questions.

 

[seniorjudge]

Ok. Thank you all ( seniorjudge, BlondiePB & sinistersister ) for your help with my questions.

You're welcome....