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#2266479 - 02/16/22 06:52 PM Pay on Death Account
abbyauditor Offline
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abbyauditor
Joined: Dec 2006
Posts: 78
texas
It was my understanding that when a customer opens an account and has a beneficiary on the account that the account is to be titled in the customer's name only. Now I'm finding conflicting information. In one book I have it says that the account is to be titled "John Doe, P.O.D. Mary Doe" or Joe Doe or Mary Doe, P.O.D. Sally Doe. I am in Texas and would appreciate any guidance you may be able to provide.

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#2266482 - 02/16/22 07:18 PM Re: Pay on Death Account abbyauditor
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
What is your question. The first example is a single-owner account, and second one is a joint-owner account.
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#2266530 - 02/17/22 05:37 PM Re: Pay on Death Account abbyauditor
TaraSue Offline
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Joined: Oct 2013
Posts: 60
I think I get what you're asking. The Beneficiary must be listed in the official account paperwork. That doesn't mean they have to be part of the account title itself, if your system allows. On the back page of our account forms there is a spot for beneficiaries and they are listed there. Should beneficiary change after account opening we have a specific separate form to designate beneficiaries. We had a lot of customers complain that beneficiaries were showing on the "mailing address" so we have stopped including them in the title since we have an alternative to document them on the card or in supplemental paperwork. The owner or joint owners are the only ones who show in the account titling and the beneficiary relationship is still defined within the system and on the appropriate signed paperwork.

Of course, I'm saying all that by interpreting your question within my own experience. If I'm way on my interpretation, please disregard.

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#2266589 - 02/18/22 02:56 PM Re: Pay on Death Account abbyauditor
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,844
Pulling people out of the ditc...
personal experience

Dad Gilmore has personal single owner account, POD each of 4 kids Gilmore
Dad Gilmore and Mom Gilmore have joint checking, POD only kicks in when both parties deceased

Dad Gilmore resided in Texas, the POD claim required death certificate and signed paperwork from each Kid Gilmore to claim the single owner funds

Mom Gilmore has since retitled the joint account to be single owner
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#2266767 - 02/23/22 07:04 PM Re: Pay on Death Account rlcarey
abbyauditor Offline
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abbyauditor
Joined: Dec 2006
Posts: 78
texas
Sorry for the confusion. What I'm asking is, does the words "Pay on Death" or "POD" have to be included in the title of the account on the signature card. For example Jane Doe opens an account and wants a beneficiary on the account. Is ok just to title the account "Jane Doe" or does is have to say "Jane Doe, Pay on Death Account or Jane Doe, POD Account".

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#2266777 - 02/23/22 08:05 PM Re: Pay on Death Account abbyauditor
RockChucker, CAMS Offline
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Joined: Jul 2013
Posts: 1,700
The Country
I am not aware of any requirement that says it has to be in a "specific" spot just that it needs to be documented and retained. We typically only have it on the signature card.
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#2266789 - 02/23/22 10:07 PM Re: Pay on Death Account abbyauditor
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
12 CFR 330.10

(b) Required intention and naming of beneficiaries.

(1) The required intention in paragraph (a) of this section that upon the owner's death the funds shall belong to one or more beneficiaries must be manifested in the “title” of the account using commonly accepted terms such as, but not limited to, “in trust for,” “as trustee for,” “payable-on-death to,” or any acronym therefor. For purposes of this requirement, “title” includes the electronic deposit account records of the institution. (For example, the FDIC would recognize an account as a revocable trust account even if the title of the account signature card does not designate the account as a revocable trust account as long as the institution's electronic deposit account records identify (through a code or otherwise) the account as a revocable trust account.) The settlor of a revocable trust shall be presumed to own the funds deposited into the account.

(2) For informal revocable trust accounts, the beneficiaries must be specifically named in the deposit account records of the insured depository institution.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2266817 - 02/24/22 04:18 PM Re: Pay on Death Account rlcarey
abbyauditor Offline
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abbyauditor
Joined: Dec 2006
Posts: 78
texas
Thank you. So if I'm reading this correctly, POD has to be in the title of the account on the banks records (Signature card). thanks.

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#2266823 - 02/24/22 04:52 PM Re: Pay on Death Account abbyauditor
TaraSue Offline
Member
Joined: Oct 2013
Posts: 60
Here's how we worked with Randy's clarifications - our signature card had a spot on the back to list the beneficiaries. It covered having them listed "in the deposit account records" and allowed us to NOT put the POD info in the account title (where it could be seen in anything that was mailed.) You do not need to list Jane Doe, POD account.

We handle formal revocable trust accounts differently (trust is the title of the card itself.)

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