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#2250009 - 03/03/21 02:54 PM POD acct - who gets $ if both die at same time?
BBoyd Offline
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BBoyd
Joined: Mar 2002
Posts: 2,494
MI
On a POD account with one beneficiary, would the funds EVER be given to the estate of the beneficiary? Seems I had read about a "survivorship period" where the beneficiary has to live longer than the account owner, but that may not apply to POD accounts.

Scenario: John has an account POD Mary. John and Mary are both ill. If John passes first - the funds would go to Mary. If Mary passes first, funds would go to John's estate. If they pass at the exact same time - who gets the funds?

Thanks for any input!
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#2250020 - 03/03/21 04:02 PM Re: POD acct - who gets $ if both die at same time? BBoyd
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
Death at the exact same moment would be something for the courts to decide. Otherwise:

ESTATES AND PROTECTED INDIVIDUALS CODE (EXCERPT)
Act 386 of 1998


700.6307 Ownership on death of owner.
Sec. 6307.

On death of a sole owner or the last to die of all multiple owners, ownership of securities registered in beneficiary form passes to the beneficiary or beneficiaries who survived all owners. On proof of death of all owners and compliance with any applicable requirements of the registering entity, a security registered in beneficiary form may be reregistered in the name of the beneficiary or beneficiaries who survived the death of all owners. Until division of the security after the death of all owners, multiple beneficiaries surviving the death of all owners hold their interests as tenants in common. If no beneficiary survives the death of all owners, the security belongs to the estate of the deceased sole owner or the estate of the last to die of all multiple owners.
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#2250024 - 03/03/21 04:17 PM Re: POD acct - who gets $ if both die at same time? BBoyd
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,858
Cape Cod
Note that Randy has provided an excerpt from the laws of one state. Another state may have a very different take on who gets the funds if, for example, no named beneficiary survives the death of the last owner of a POD account. Identify and be familiar with your state's provisions on this question and make sure your bank's procedures align with those state laws.

When your bank's branches reach into other states, the law of the state where the account is opened generally controls, and you may need to follow different rules in the branches in State A than you follow in the branches in State B.
Last edited by John Burnett; 03/03/21 04:18 PM.
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#2250052 - 03/03/21 06:45 PM Re: POD acct - who gets $ if both die at same time? BBoyd
BBoyd Offline
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BBoyd
Joined: Mar 2002
Posts: 2,494
MI
Thank you so much for your insight Randy and John!
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