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#1058159 - 10/03/08 07:31 PM Payable on Death (POD)

Other than the consideration for deposit insurance, when would it benefit the customer to title the account POD versus just listing a beneficiary? The bank listened to the recent BOL seminar on deposit insurance and are now concerned that we don't "require" the accounts to be set up as POD so that the customers can get the benefit of the deposit insurance. We believe that the customer has to determine the intent but want to understand when POD would be more appropriate. Thank you.

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#1058311 - 10/03/08 09:03 PM Re: Payable on Death (POD) Anonymous
Marnie Offline
Gold Star
Joined: Nov 2007
Posts: 437
The rules say the POD must be in the title of the account in order to qualify for the informal trust insurance rules, which translated to $100,000 per beneficiary (may change now in light of today's bill). By not putting POD in the title, this becomes either an individual account or joint account, and insurance is then calculated on the owners, not the beneficiaries, which could be considerably less. It's all in the categories and POD informal trusts are a separate category which benefits the customer and may signficantly raise their coverage on accounts IF the word POD is in the title.

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#1058431 - 10/04/08 02:00 AM Re: Payable on Death (POD) Marnie

Thank you. I do understand about the insurance impact, just wondering if that is the only reason someone would set up an account as POD?

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#1058432 - 10/04/08 02:12 AM Re: Payable on Death (POD) Anonymous
BBoyd Offline
Diamond Poster
Joined: Mar 2002
Posts: 2,494
How would you name a beneficiary on an account unless it was POD or ITF? POD means "payable on death" which - in most cases - is the same as naming a beneficiary. The intent would be the same: funds pass to a named beneficiary upon the death of the account owner.
Opinions are mine and never to be taken as legal advice!

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#1064330 - 10/14/08 08:59 PM Re: Payable on Death (POD) BBoyd
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,588
Cape Cod
The stories are many of wills that indicate that "account X at bank A is for granddaughter Mary; account Y in bank B is for grandson Steven," etc. That is old-style process, and it slows things up through probate, and may even mean that Mary and Steven never get their money (if the estate has creditors, etc.) Cap that off with the fact that it doesn't take advantage of the special POD insurance rules.

Depositors don't have to designate the beneficiary's name in the account title (the info does have to be in account records unless a true trust is involved), but they do have to include, in the title, the "flag" for the FDIC that says there is a special situation here. "POD," "ITF," "Trustee for" or other wording to indicate that the rules of 330.10 have to be applied.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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#2262734 - 11/19/21 06:25 PM Re: Payable on Death (POD) Anonymous

Do I have to disclose that I was named POD Benificary on my Fathers bank accounts? I would like to keep it anonymous . Is there a way any other sibling can get the information?

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#2262735 - 11/19/21 06:34 PM Re: Payable on Death (POD) Anonymous
BrianC Offline
Power Poster
Joined: Nov 2004
Posts: 6,232
BankersOnline is a site for bankers to discuss compliance related topics as opposed to providing support to consumers. This is a question you should be discussing with your attorney or financial planner.
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!

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