Researching the possibility of implementing POD accounts. My question is about the notary process. For those of you offering POD accounts, do you have an inhouse notary or do you send your customers outside of the bank? What are your procedures for verifying the affudavit is returned, and what happens to the accounts POD status if the affidavit is not notarized or returned?

Thanks!

We offer POD accounts, we have an in-house notary, so there is no need to track a return of the affidavit, and the POD status is not questionable in our case. Just to let you know it also has to be witnessed by 2 (aka: Acknowledged)

Thanks for your response. We do have a few in-house notaries, but I have heard that offering that service to customers on an in-house form can add a level of difficulty if a dispute arises between family members. We taken a few seminars on POD accounts and have been told to avoid it if possible. Have you had any issues with this?

Thanks!

Please draft the complete notarial certificate as part of your POD Affidavit, not just "take this and have it "notarized"." A properly completed document with an appropriate notarial certificate will stand stronger even in the face of scrutiny. Depending on the state(s) in which your branches are located, your notaries should be educated on their role to provide assurance your internal documents are upheld if questioned.

Here is a good resource for document drafters to insure proper notarial certificate wording. Have in-house counsel review for statutory compliance in your domicile state: http://www.notarypower.com/doc_guide.html

Up until a few years ago, we were not offering POD accounts either. At that time there were changes and clarifications to the Revocable Informal Trust Accounts (Payable on Death). At one time, the POD beneficiaries had to be within the relation of Children, Parents, Siblings, Spouse. There may have been another relationship, I can't remember right now. That was part of the changes. The other change requires an "authenticated" affidavit. Authenticating means witnessed by 2 people & notarized. The account title must have the term: "in trust for", as trustee for" or "payable on death to" or similar (we use "POD"; it must also name the beneficiaries (does not need to be in the relationship levels named above). It does require a properly prepared Affidavit with all the certifications included, and must be notarized and authenticated (witnessed by 2). We use our in-house notaries and 2 witnesses to the act. We have not incurred any problems as of yet.

The other change requires an "authenticated" affidavit.

How often do you require the POA affidavit to be updated? each time a transaction is performed, annually, ??

James H

With each new transaction. The POD affidavit does not need to be UPDATED. It is valid for the term of the account it refers to, unless changes are made by the account owner(s).

So the account owner is responsible for telling us when the POA is revoked? Don;t need to have a new affidavit completed each time the POA is used?


How long do you retain Affidavit? as long as the account is opened or until changes are made that afffect the affidavit?

I think you mean "POD" Affidavit. You need a new "POD Affidavit of Ownership" for each POD account you open. This affidavit expires when the account is closed. Our bank procedures, are so that any changes to POD beneficiaries, require a new account. Old account with A & B as POD beneificiaries will be closed and a new account, "new account number" opened with B & C as the beneficiaries.