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#687350 - 02/15/07 02:46 PM POD Documentation
Tocomply Offline
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Joined: Nov 2004
Posts: 650
I searched this topic and was not able to find an answer on how other banks documentaccounts with a POD. If a customer opens an account in the name of John Smith then later wants to add a POD for the account does he need to sign a new signature card and must he sign it as John Smith POD to (name)?

Question #2. A year later he wants to delete that name and changes the name of the POD. What do I need to get? A new dated signature card?

I ask this because someone doesn't think we need anything but a verbal request to change it. My argument: If this was true I could add my name to every account in the bank.

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#687374 - 02/15/07 03:05 PM Re: POD Documentation Tocomply
Skittles Offline
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Posts: 13,965
TN
From my understanding, the additional FDIC insurance will not 'kick' in unless POD is listed in the title.

Documenting the addition or changing of PODs is a best practice. What if I name my son as POD and later change it to my step-daughter and the bank doesn't obtain any documentation. After I pass away my son fights for the funds and the bank has no back-up. I think that would be an extremely difficult situation to defend.
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#687394 - 02/15/07 03:24 PM Re: POD Documentation Skittles
#Just Jay Offline
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Cheeseheadland
I am getting a similar question from our retail side too.

We use CSI forms. When a customer comes in to add a POD/POA or convert the account to a trust, the branches are simply completely the form for either of these changes, also provided by CSI, which have a spot on the form to notate which account this changes, and then they make the appropriate ownership changes on the platform system.

My concern though is that the orginal signature card is never touched in this case. So then, is the new POD form with refrence to the original account enough to change the ownership of the account in the bank's and FDIC's eyes, or must we also create a new signature card? It seems like so much extra work since it is a three page canned account agreement/signature card.

The account agreement/signature card also has spot to list POD/POA/Customerdian/trust info, but does not list any of the wording the actual POD/POA/Custodian/trust forms do.
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#687463 - 02/15/07 04:12 PM Re: POD Documentation #Just Jay
SJB Offline
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SJB
Joined: Jun 2002
Posts: 1,210
California
Any change in vesting should be documented in writing, period. Whether you make an addition to the original sig card and have it initialed (and annotated as to the revision date) or do a whole new card is up to you. If you do a new one, the old one should be marked "Superceded dd/mm/yyyy" to maintain the account history.
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#687908 - 02/15/07 08:20 PM Re: POD Documentation SJB
Tocomply Offline
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Joined: Nov 2004
Posts: 650
Should the account be titled as John Smith POD Mary Smith on both the signature card and the system?

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#688164 - 02/15/07 11:00 PM Re: POD Documentation Tocomply
OkieOps Offline
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OkieOps
Joined: May 2001
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OK
We don't usually list the POD name on the system. It upsets some customers as far as privacy with the name listed on the statement. We just put POD on File on the system.

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#688287 - 02/16/07 02:16 PM Re: POD Documentation OkieOps
Midwest Banker Offline
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Joined: Nov 2004
Posts: 349
Cheeseland
For FDIC purposes, the POD shows on the signature card and the customer (owner) signs the signature card and POD designation.

The POD information is then uploaded into the system and connected to the customers account. This name of the POD does not appear in any type of mailing.

Always, always, always, get it in writing!

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#689028 - 02/17/07 12:36 AM Re: POD Documentation Midwest Banker
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
Based on discussions with FDIC, we handle as follows:

Signature Card: Jane Smith POD Joey Jones
System: same as above preferred, but OK to use Jane Smith POD
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#690967 - 02/22/07 05:20 AM Re: POD Documentation BrendaC
ropingbanker Offline
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Out West
I update the signature cards every time there is a change. But make sure to include that the new signature card supercedes prior to the date of the change and who updated the signature card.
We list the POD on the signature card, however we have a teller alert code that flashes POD on SIG CARD,due the to privacy issues of some customers

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