Is there a difference between "beneficiary" and P.O.D.?
Answer by John Burnett, BOL Guru
BIO AND CONTACT INFO
Question: Is there a difference between "beneficiary" and P.O.D.? I was told by my compliance officer that there is a difference.
Answer: "Beneficiary" is a much-used term describing a person (natural or non-natural) who will benefit from an event, a trust, a will, an action, or anything else. "P.O.D." refers to an instruction concerning disposition of an asset when the owner(s) die(s). They are not mutually exclusive.
When you have a P.O.D. designation on an account, you have a beneficiary or beneficiaries named to indicate who gets the account on the death of the owner(s).
First published on BankersOnline.com 2/3/03
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