Skip to content

Titling Accts. for Payable on Death Purpose

Answered by: 

We have a savings account that was opened March of 1993 titled hypothetically: Mary Smith and John Smith Trustees for Tim Smith. Does anyone ever remember titling accounts this way for payable on death purpose?

Randy Carey
Account types and ownership categories, POD designations, etc., including required titling is a State law issue.

Brian Crow
As Randy indicates, this is a matter of state law. As an example, in Illinois, this designation was used to name a beneficiary for an account with multiple owners which indicated that the beneficiary would not be entitled to the funds until all owners died.

State lawmakers decided that there could be potential confusion using the term "payable on death" with multiple account owners since the passing of one of the owners would not trigger transferring the funds to the beneficiary.

Consult legal counsel familiar with the laws in your state to determine how this titling impacts the transfer of ownership.

First published on 08/09/2020

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics