Does POD have to be in the account title or can there just be a notation on the signature card that an account is POD? If it has to be in the title can it just say John Doe, POD account or does it have to say John Doe, POD Jane Doe? Some customers don't want their mailed statement to read the beneficiary's name in the address.

For FDIC insurance purposes "POD" needs to appear in the account title. It is not necessary for the name of the beneficiaries to appear in the account title as long as they are noted on bank records.

There might be a state law that says the name of the beneficiaries must be in the account title.

We do not put the name of the beneficiary in the account title unless the customer requests it.

POD does need to be listed in the account title on the signature card and the account records however we create a mailing title for those people who do not wish to have the beneficiary's name appear on the mailings. This would apply to mailings only.

We do not have to list the POD on the bank statement or mailings. It only needs to be on the bank record (signature card) which also states the type of ownership as payable on death.

Having POD checked off on the signature card is not enough. POD has to appear in the account title, which may or may not print on statements.

Not that this has anything to do directly with the above discussion other than being a POD account. We have a situation where the PR notified the bank of an account owner death. One of the accounts is POD, however the beneficairy has not stepped forward yet. This account is a Interest bearing account. We are wondering what other banks are doing with the funds after recieving death notification. Are you closing the account and sending funds to beneficiary or are you closing the account and re-opening the account in the beneficiary name for tax reporting purposes?

Please consider waiting until the beneficiary shows up before you do anything.

Your bank does have a legal responsbility to file 1099's that allocate the interest between the decedent and the POD beneficiary, but that can be done at year end. Your bank is not in a position to open an account or do the necessary information reporting without the beneficiary's participation; e.g. you need CIP information and a TIN certification.

Not to suggest that it is your responsibility to track down the beneficiary, but you could choose to contact the beneficiary and ask him or her to come in. If the beneficiary is not known to you the personal representative for the decdent's estate might be able to put you in touch.

This account is paying interest by check to the deceased account holder. There has not been any interest paid (yet) since the account holder died. But it is due in April. Who should the interest continue to be paid by check and to who or should it be changed to compound?

The beneficiary now owns the account and the interest it earns. Switch to compounding.

Now we have a PR (from another state) telling us that the POD account funds need to go through the estate. The account is held in St of WA and the PR was designated in St of ID. We abide by our state don't we?

Personal representatives don't necessarily understand the law and often don't understand the nuances of payable on death accounts. It is normally the case that the deposit contract is construed under the laws of the state in which the bank is located, unless another state is designated in the deposit contract.

The PR needs to know about the funds for estate tax purposes, but they normally don't flow through the estate account.

Kicking an old horse.... Randy, I haven't ever seen when a POD account would pass through an estate and I'm hoping I haven't missed something. In what instances would a POD account pass through the estate?
TIA

Tax purposes

OK - I misread your question last night and it is too late to modify my answer. A POD would never "flow through" the estate distribution process. Checks would be cut directly to the named beneficiaries by the financial institution that holds the account. The estate executor or executrix would not be prevented from knowing the account balance and accrued interest paid at the time of death however. They would also need information to complete the deceased person's last tax return and any tax filing for the estate. They even might be instrumental in helping to locate the beneficiaries in some situations. Since the original accountholder is deceased, there are no real privacy concerns.

Thanks Randy!