POD Designations on Safe Deposit Boxes
by Dave McGuinn, BOL Guru BIO AND CONTACT INFO
In a previous Guru Q&A about a safe deposit box being opened with a POD. BOL Guru Dave McGuinn noted that Iowa is the only state where there is a statute allowing the POD. Here, Dave answers a number of additional follow-up questions sent in by a banker about the Iowa law.
QUESTION: Does this mean we must allow POD designations on safe deposit boxes?
ANSWER: No. This provision is optional and, if it is offered, it must be included in your safe deposit lease and made available to renters an available option.
Some Iowa lease agreements have separate clauses called Attorney-in-fact, Trustee appointment or Personal Representative appointment. Specific legal wording is necessary in these sections. This clause must be completed and a person must be designated before anyone is appointed to act in the renter's behalf.
QUESTION: Has this been tested in court?
ANSWER: I am not aware of any court cases relating to this provision.
QUESTION: Even though the state allowS this, can we decide as a business practice not to allow this?
ANSWER: Yes. This is optional and must be addressed in your lease agreement.
QUESTION: Does the POD designee have access to the box after death of the owner(s) or are they only a beneficiary through the regular after-death access process, i.e., attorney for the estate, etc.
ANSWER: If this Attorney-in-fact option is available, it usually states that the authorized party shall have access to the box before and after the death of the lessee.
If this option is available as a Trustee or Personal Representative clause, the appointed individual shall only access the box after the death of the lessee.
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