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Sole Prop Designate A Payable On Death Beneficiary

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Question: 
Can a sole proprietor designate a Payable on Death beneficiary? I have an elderly farmer who wants his farm business to go to his son who is authorized on the account, that is why I wondered about it if it could be POD
Answer: 

Whenever a question involves property rights, including questions like this, it's always a good idea to check out state law. That said, if your state recognizes Pay on Death designations, it's probably possible for a sole proprietor to put a POD designation on his or her sole proprietorship account.

It's important to note, however, that the POD designation only addresses the deposit account. It does nothing about transferring ownership of the business itself, or any of the equipment, supplies, etc., used in the business. The farmer obviously has to make other arrangements for transferring that type of property, or there won't be any business for his son to run.

First published on 09/15/2014

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