About Ken Tumin

Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

Featured Savings Rates

Popular Posts

Featured Accounts

My Experience as a Beneficiary Claiming POD Bank CDs

POSTED ON BY

My Experience as a Beneficiary Claiming POD Bank CDs

Most banks and credit unions allow you to name payable-on-death beneficiaries on your accounts. I reviewed many times how this can be used to increase your deposit insurance coverage. If you don't need to worry about increasing your deposit insurance coverage, you may still want to specify beneficiaries on your accounts. It can make it much easier on your heirs. When the owner dies, the account doesn't have to go through the probate process. This can save your heirs time and legal expenses. The beneficiary can claim the account directly at the bank or credit union.

I was the beneficiary on several small bank accounts that my dad owned. He passed away in March, and this year I had my first experience of claiming accounts as a beneficiary. Except for my problems at Wells Fargo, the process of claiming the accounts was simple. However, there were a few issues that I had to consider. I thought it would be useful for me to review these in a blog post.

In the last 20 years of my dad's life, almost all of his savings were in CDs. He had several small CDs at a few banks and credit unions. In addition to the safety and simplicity of the CDs, he also liked the ability to designate beneficiaries. He didn't have enough to worry about higher deposit insurance coverage. His main concern was to make it easy for me and my two brothers to inherit his savings without having to go through probate.

Specifying beneficiaries on bank accounts is indeed an easy way to keep money out of probate. Most banks allow you to add one or more beneficiaries to an account. They typically label beneficiaries as "payable on death" (POD) or "in trust for" (ITF).

One downside to specifying a beneficiary is that many banks and credit unions require the beneficiary's social security number. One of my credit unions refused to add a beneficiary without the beneficiary's social security number. I know readers have also reported this problem at some banks. I was wanting to add my brothers as the beneficiaries, but I didn't want to carry their social security numbers. Also, I didn't want to provide this number. I trust the credit union, but nothing is 100% secure. The more you give out these numbers, the more likely it could be found by hackers.

While you are alive, the beneficiaries have no access to the bank accounts. Access is only available after you die. In my experience, I just had to bring the certified copy of the death certificate and my ID. I also brought the copies of the account documentation with the account number and the beneficiary designation. This made it easier for the banks to look up the accounts in their system, but I don't think this was necessary for all cases except for that one Wells Fargo CD in which they had used the wrong beneficiary form.

Keeping the CD Rates and Terms

If a beneficiary is claiming a certificate of deposit, he or she can typically close the CD without an early withdrawal penalty. That was the case for all of my dad's CDs. However, there was an interesting issue with this. Many of my dad's CDs were 5-year CDs that were opened a few years ago when the rates were much higher. If I closed those CDs early, I would lose out on the high rates.

I was hoping that the banks and credit unions would allow me to take ownership of the CDs with the original rates and maturity dates. However, only two banks allowed this. The credit unions and the other banks required that the CDs be closed before I could take ownership of the funds.

The two banks that changed ownership without closing the CDs were SunTrust and PNC.

SunTrust Bank had the best process. They quickly gave me this choice at the branch, and converted the CDs with my name as the owner. They also allowed me to add new beneficiaries. The CD rates and maturity dates remained the same.

PNC also converted the CDs, but it did one surprising thing. It converted the CDs that listed me as the beneficiary without my permission. My brother was also a beneficiary on some PNC CDs, and he went to a PNC branch before I did. For some reason, PNC not only converted my brother's CDs, but it also converted my CDs. When I visited PNC, I learned that I was already the owners of these CDs. The main problem was that I could no longer close the CDs without an early withdrawal penalty. Fortunately, I had wanted to keep the CDs opened with the original rates and maturity dates. So I didn't protest what they did.

For all the other banks and credit unions, I was not allowed to keep ownership of the CDs with the original rates and maturity dates. The CDs had to be closed before I could take ownership of the funds. However, I still had a choice to make. Most would allow me to wait before closing the CDs. My dad had set up all of the CDs so interest would accrue in the CDs. I could just let the CDs mature and close them at maturity. There were two issues with this approach. First, all of the CDs would mature after 2011. My brothers and I felt that it would simplify tax reporting to have the CDs closed before 2012. Second, there's an issue of FDIC coverage. According to the FDIC:

The FDIC insures a deceased person’s accounts as if the person were still alive for six months after the death of the account holder. During this grace period, the insurance coverage of the owner’s accounts will not change unless the accounts are restructured by those authorized to do so.

Thus, for reasons of safety and simplicity, my brothers and I decided to close the CDs at the end of this year.

Not all of the banks were as willing to let me wait. Bank of America and Wells Fargo did not give me the choice to wait. I had two Wells Fargo CDs that had me as the beneficiary. Only one was done wrong. When I learned of the problem with that CD, I asked if I could wait to close the other CD. The banker insisted that the CD had to be closed immediately. I had a similar issue with Bank of America. Since the rates of these two CDs weren't that high, I didn't protest. It does show that you need to be careful when you decide to claim the account if you want to maximize the interest.

Related Pages: CD rates

Related Posts

Comments
me1004
me1004   |     |   Comment #1
Very interesting to note the loss of FDIC coverage 6 months after the death.

I note, when I did this a few years ago after my father died, I learned that I, as beneficiary, was the trust executor. I had always thought the banks were the executor, and I was merely the receiving beneficiary. But as such, I am VERY alarmed that PNC converted your CDs without ever even hearing from you. Yes, your brother had informed them of the death. Still, as I understand it, they had no legal authority to do anything with the accounts on which you were beneficiary -- I believe only the executor has power to do that -- unless perhaps it was part of the terms of the CD that it would automatically close upon death, but I've never seen such terms.

Come to  think of it, I'm not sure I've seen anything of disclosures about what happens to a POD upon death. If the bank wants to apply rules, such as whether you MUST close it, I would think that would have to be specified in disclosures up front upon opening the POD.

In my case, I was dealing with a CD at Hudson City Bank in New Jersey. I was there, and just wanted to close it while there. But I learned that if I closed the CD before the interest was posted, I would lose all accrued interest that had not yet been posted. It was posted quarterly, so I waited until the end of the quarter and then closed immediately, and they mailed me the check. If they had had a rule that it must close upon death, that I had no choice to let it ride, then I would have lost all accrued interest! Even worse if they had taken it upon themselves to close it before I even had a chance to get in touch wiht them (my brother had given them a copy of the death certificate before I was even informed of the CD, so there are always circumstances why they might know of a death yet the beneficiary could not yet have been in touch with them).
Anonymous
Anonymous   |     |   Comment #2
I think me1004 (comment #1) is misinterpreting the FDIC provision: "The FDIC insures a deceased person’s accounts as if the person were still alive for six months after the death of the account holder."

This does not mean that FDIC coverage ends 6 months after death - the only thing that changes after 6 months is the method of calculating the total amount of FDIC coverage available.  So if the beneficiary had other accounts (in the same ownership class) at the same bank, then the FDIC would only provide insurance up to the limit for that beneficiary alone after 6 months had passed; for the first 6 months, there would be an increased insurance limit, calculated as if the account holder were still alive.

If the beneficiary had no other accounts (in the same ownership class) at the same bank, or if the combined total of existing accounts and inherited accounts were below the FDIC coverage limit, then all funds would continue to be insured by the FDIC regardless of whether the account has been claimed.

 
me1004
me1004   |     |   Comment #3
Oh, is that what they were saying? Wasn't clear immediately without more specific language. They should say it as clearly as you did. 

BTW, I wasn't misrepresenting. I merely misunderstood.
Living Trustee
Living Trustee (anonymous)   |     |   Comment #5
Excellent column!  Passing this around to all my friends.  Thanks! 

A related note: My folks put all their accounts (a big bunch of CD's) and other assets into a family trust, and I was the Managing Trustee.  Hence, all of their bank accounts were titled under their trust, so no POD's (the trust was filed with each account and showed the beneficiaries, and the FDIC treats that beneficiary page like a POD page). Upon my second parent's death I set up a special liquidation account and, upon presentation of the death certificates and my trustee certificate to each bank, I received checks payable to the temporary liquidation trust acccount that I set up (I then paid the pooled cash out to the trust's beneficiaries from that one account). 

In that regard, I delayed a 5-year, 6.00% APY CD's liquidation until the very end of my trust-liquidation duty.  All went smooth with all banks, and the FDIC coverage during the acccounts' existence was tied to the number of beneficiaries in the trust.  BUT, this was an "A-B" trust, so if one parent dies first his share becomes "A-trust" and "irrevocable,"  while the surviving parent's share (B trust) remained revocable.  The pitfall: FDIC coverage on an irrevocable trust was reduced to just one-beneficiary level (i.e., as if there was only one beneficiary on the account, even if there were multiple trust beneficiaries shown on the trust document filed with every bank). 

Still, when IndyMac failed (I managed the cash by CD-investing in weak, high-pay banks), the FDIC didn't seem to notice that it was an irrevocable trust account and my marginal, over-limit portion was safe (I got 100% of the account paid out).

POD's are wonderful; I have them on all my accounts.  They are obviated, however, by the use of a living trust. So when you see a POD, that often means that the owner is using a will, rather than a trust.  A will is more expensive to administer at death than a living trust.  But simple estates like mine (CD's with POD's, a few assets, no spouse or child support) can get away with POD's and a will.  Those with more complex estates -- look into a living trust, and remember that POD's won't work if the CD's and other bank accounts are placed in the trust (because the trust's beneficiary page controls).
Anonymous
Anonymous   |     |   Comment #6
Very interesting information. I just have been looking into the best way to set up CD's when my relatives live overseas and will not be able (or willing) to come to claim the CD personally at the bank if I use POD designation. Can anyone give me any advice. I would greatly appreciate it.
Anonymous
Anonymous   |     |   Comment #169
How about looking into opening the CD accounts that allow POD's in your relatives' countries ?  The bank's financial officers can best direct you into how to invest but remember, it would be nice to have an international Estate attorney in US to help.  Also, you may inquire with a reputable global investing firm. Or, you can also contact a foreign attorney of selected country.   You can browse from a list  that each USA Embassy or Consulate may have in your relative's country.  Just some tips.
lou
lou   |     |   Comment #7
Poster #2  I am confused by your explanation. I think you are saying the $250,000 insurance for a beneficiary would continue beyond the 6 months even if the account owner has died. However, if you were a beneficiary for another account owner at the same bank, the $500,000 of insurance you had as a beneficiary for both accounts would now be reduced to $250,000 after 6 months of the death of one of the account owners. Is this correct? Assuming I am understanding this correctly, this could be a problem if there is $500,000 in both accounts. After 6 months, $250,000 of the funds  would be uninsured if I  did not close the accounts.
Matt
Matt (anonymous)   |     |   Comment #241
I don't believe you would have $500,000 of FDIC Insurance if you had multiple accounts at the same bank.  The FDIC limit is $250,000 per owner per institution.  The number of accounts is irrelevant to the coverage limit.  
Anonymous
Anonymous   |     |   Comment #246
You are incorrect, Matt.  Please go to any bank and have them clarify it for you.  It depends who the owner/owners of the account(s) are, and the beneficiaries involved.
Future Living Trustee
Future Living Trustee (anonymous)   |     |   Comment #8
Question to "Living Trustee" (post #5) and others:  

I am pondering setting up a living trust.

My understanding is that it will eventually be up to any candidate financial institution to review my trust document to decide whether it will be bound by its conditions before it will agree to open a trust account and re-title my assets into the trust.

One key condition for me would be that my trust document stipulates that any term deposits can only be held in institutions that allow redemption and/or transfer of title prior to maturity upon the triggering event of my death.  The idea here is to explitcitly ensure that my trust is only involved with financial institutions that agree to allow my trust to be wound up promptly.  (Otherwise there is a worst case scenario:  suppose trust termination is delayed for years pending maturation of locked-in CDs, then consider the annual fees if a backup corporate trustee comes into play.)  

My question is:  how specific can my trust document be without spooking the candidate financial institutions?

E.g. can I safely elaborate in the following manner? :

“… for term deposit assets, the trustee can only use institutions that allow term deposits to be converted prior to maturity upon the triggering event of the settlor's death in at least one of the following manners (A) redemption for cash prior to maturity penalty-free for par value, plus any unpaid accrued interest earned to date of withdrawal, (B) transfer of ownership prior to maturity to one or more individual beneficiaries specified by the successor trustee without change of terms …”

The idea here is of course that my trust can be wound up not only promptly, but also for fair value and possibly considering preferences across the beneficiaries.

I would appreciate any expert comments on this matter.
Anonymous
Anonymous   |     |   Comment #9
There are no real advantages to a living trust over POD's. In fact there can be several disadvantages. Do your own due diligence to determine whether your estate actually requires an LT.Do not automatically take a lawyers  advice that you need one.
Ed
Ed (anonymous)   |     |   Comment #10
I was told i may be benificiery to a c/d. how can i find out if this is true, the person has passed away.  should i contact the bank . im not sure how to go about it.thank you Ed.
KenBDG
KenBDG   |     |   Comment #11
Ed, If you contact the bank and tell them your name and the name of the person who passed away, they may be able to confirm if you're a beneficiary of an account. The bank may need a certified copy of the death certificate before they disclose any information. You'll definitely need the death certificate to claim the account.
KLN
KLN (anonymous)   |     |   Comment #12
My father had 2 cd's with BofA totalling slightly more than the 100k required for probate in the state of California.  He had a trust and a will specifying my sister and I as executors/trustees.  BofA would not release the funds from the cd because the title on the cd was in my dad's name -not the trusts.

I went into the branch where the cd's were opened yesterday.  They said they DID NOT HAVE the original terms or info on the cds to determine if a beneficiary or death 'put' or POD was on either of the cds.  This seems unbelievable to me that they don't have this information at the branch where they were initiated.  They said I needed to go to court to get the 'letters testimentary' to access the funds - costing me court and attorney fees.

Meanwhile all his funds are in those cds and I have no way to pay his bills.  I felt like they were stalling and that by some type of fed law they should HAVE to have this information.

Any help is appreciated.

KN
Apache
Apache   |     |   Comment #13
Do you have a copy of your dad's original CDs and do they have the POD or beneficiary listed anywheres on them?  If not, you may have a problem proving these CDs belong to you.  This is why I do not deal with any bank or CU which will not give me a copy of the CD with the POD or beneficiary listed on the CD even if it is on the back.  No matter how computerized we are, I still rely heavily on my "paper" copies of everything!  One credit union I just went with does not seem to send out copies of CDs and told me to print the info off the computer.  I did this and keep it in my folder with my other CDs for "just in case" there is ever a misunderstanding about what I purchased.
FinerTheBetter
FinerTheBetter   |     |   Comment #14
So it seems like to most reliable way to prevent unwanted early closure is to not notify the bank about the until after the maturity date,

but what to do with the 1099s in the meantime? 
Anonymous
Anonymous   |     |   Comment #16
What is the problem with keeping the cd as is and hoping that the bank does not find out ?
Anonymous/Paoli
Anonymous/Paoli (anonymous)   |     |   Comment #17
#16:  I would not advise that!  What if the original owner had monthly checks being sent to his/her home? Who is going to sign them?  When the CDs mature, it would be very odd to show up at that time and tell the bank the original owner is deceased and you would then have to still come up with what is necessary to prove you are the owner.  I would do it as soon as possible because if the bank fails then you have to prove you are the one who is supposed to be paid for the CDs.  Too many problems involved in your theory, imo.
whos watching the shop?
whos watching the shop? (anonymous)   |     |   Comment #199
I was able to take a photo of checks that came in at home and deposit into my account that way.  I never had a problem  doing that..I have come to the conclusion, "Nobody is watching the shop!"
Anonymous
Anonymous   |     |   Comment #18
Hello, can anyone here help me? My grandmom in floridad passed away last 2010 and the executor informed me that I was named as a beneficiary of my grandmom's bank account but she refused to tell me the complete information but instead she asked me to write an authorization letter for her so she can access the account but I refused to do so and we never talked again. I was able to ask another relative to get me a copy of the probate document regarding my grandmom's estate and I saw a letter there coming from Bank of America stating that the previous account number of my grandmom's account was changed to a new account number due to her death and it should be filed with her estate but I wonder how come it was not stated as one of her assets in the probate document and her only asset that was reflected in probate is her life insurance bond. I already sent a letter with her death cert and my ID inquiring about a POD account to BOA branch near my grandmom's house but up until now there is no reply...any other suggestions?
Anonymous
Anonymous   |     |   Comment #23
#18:  I agree with #19.  I think you need to find a way to go to the bank in question and insist on seeing the account you were named beneficiary of.  I would think it is the Executor's responsibility to provide you with the information you need to access the account.  As in my post to the other poster about Wells Fargo, if you are a minor, you might do well to get a family member to go with you to the bank to make sure you get what your grandmother wanted you to have.  Something seems wrong that anyone could change the account number after your grandmother's death unless they took control of the account.  You should insist on knowing just who did that since the account was supposed to pass on to you.  From everything I know from having PODs on CDs for years, all that is necessary for the POD person to do is to present a copy of the death certificate of the original owner of the CD and their ID to show they are the person named on the account as beneficiary.  What is very important here is that your grandmother did know to put your name on the account as beneficiary.  I think once you find out who changed the account number and why, you will then get to the bottom of what is going on here.  Best of luck to you!
Anonymous
Anonymous   |     |   Comment #19
I would suggest that you physically go to a Bank Of America branch along with the death certificate and your ID information.  Request that they look up the account and see if you are listed as beneficiary.  If you are, then it is your right to get a check for the amount coming to you.  To me, it is a little suspicious that the account number changed prior to distributions to the proper beneficiaries. 
Anonymous
Anonymous   |     |   Comment #20
Both my parents are dead.  I found that Wells Fargo was the most greedy of all the banks. It doesn't surprise me at all that they insisted you get the current rates on the rollovers. I'm sure Bank of America follows next in line.  I had some POD stuff from my mother - since my father took care of her.  The biggest deal - as you mention - is that having POD avoids probate.  But that's about all it does...
Anonymous
Anonymous   |     |   Comment #21
Our 13 year old son is beneficiary on his Grandmothers accounts at Wells Fargo. They refuse to hand the money over, it's POD. They are requiring my husband and I go to a lawyer and then go to court to "prove" he is our son. After two days of talking to them I requested they write down exactly what it is they want. As no one, not a lawyer nor anyone at the courthouse, ever heard of such a thing. They then said we need to get guardianship or conservatorship over him. They insisted its the same thing (I know it's not). We took in her death certificate, his birth certificate, his SS card, his baptism certificate and our tax returns. None of that is good enough for Wells Fargo. We haven't done anything yet. We a still in shock they expect us to hire a lawyer and go to court when he is our son and we are his legal guardians anyway. Anyone heard of such a thing? It's in the state of Iowa if that matters.
Anonymous
Anonymous   |     |   Comment #22
Could there be some problem with Wells Fargo being concerned that a 13 year old is not qualified to handle or make decisions over a large sum of money and since they may figure you and your spouse will be directing him that they need to make sure you show proof you are his parents?  I don't think they would have this concern if your son was not a minor.  This is very interesting to know so that others who put minors on as PODs will ask the bank what is involved when time comes for them to collect.  I don't see why a lawyer needs to get involved as long as you verify he is your son.  This should be a good lesson for others to learn before they put minors on as PODs. 
Anonymous
Anonymous   |     |   Comment #177
I agree totally with you guys.I am going through the same problem with my son who is 16 with the Wells Fargo Bank, I never heard of anything like that either. The state you live in as nothing to do with it,because I live in Pa.
Anonymous
Anonymous   |     |   Comment #178
Normally one must be of legal age to contract and that would include entering a contractual relationship with a bank...there are some exceptions, e.g. look at what the SocSec Adm requires for survivor benefits for a minor and how it suggests accounts be structured. 
Anonymous
Anonymous   |     |   Comment #184
My daugher was named as the beneficiary of her father's life insurance policy, and after his passing I was required to go to court to become the guardian of her estate so the money did not have to be set up in a trust. Look up the Uniform Gifts to Minors Act. It is recognized by most states and will explain why a bank may require this.  In some instances the guardian/custodian of the estate can become bonded and have access to the money to purchase items for the minor child. If they are not bonded then more than likely a court order would be necessary to withdraw any funds.  I know it sounds like a lot especially if the money is left to your biological child, but unfortunately there are people out there who would rob their kids blind so it is all done to protect a child's assets but still allow access to the money before he or she turns 18 or 21. Also the court usually requires a yearly account filing to make sure any funds withdrawn are being used for the child.
Beth R
Beth R (anonymous)   |     |   Comment #185
# 178, Although a minor is not of legal age to enter into a contract, it was the adult (the deceased) who had the contractual relationship with the bank. The bank is obligated to fulfill the terms of the agreement. If the minor is not requesting to open an account with the bank, then there's nothing that should prohibit the bank from honoring the terms for paying the beneficiary.
Beth R
Beth R (anonymous)   |     |   Comment #186
#177, Are you trying to roll the CD into a new account in your son's name? Or are you just requesting they issue a check made out to your son? If the latter, then I don't even see why they have a right to demand proof that he's your son. All he should have to prove is his Own identity, and provide a death certificate for the deceased.

If I were you, I'd threaten to file a fraud complaint with your State Attorney's office (and be prepared to actually do it). You can give the bank a written 30-day warning that you're going to do this, in case that helps get the ball rolling without you needing to actually file a complaint. To back up your claim, you can obtain all of Wells Fargo's terms and conditions online and print them out. If you've met all the requirements listed, then basically they're clearly committing some type of fraud (and/or possible theft?).

Keep in mind that sometimes reporting them to a regulatory agency can be just effective (if not more so) than getting a lawyer involved, if the only problem is that you want them to make good on something they're required to do (i.e. if you're not asking for punitive damages).

You could think of it as though your goal is to make them do as much extra work as possible if they insist on making you go through all these hoops. Any time a business is reported to one of these agencies, the business Must then submit a formal reply to the complaint. This takes up billable hours on their part, if nothing else. And they run the risk off raising more red flags if their argument defending their practices is found to be in violation of any laws. If you really want to be a pain in their as$es, you could file identical complaints with as many agencies as possible that have any oversight over banking and/or consumer fraud. If you've received Anything from them via mail that originated from another state, that might even bump it up to the federal level.

If there are a lot of other people having this similar problem, there's also a chance they've already been reported to various agencies. If so, they might be highly motivated to not get reported again.

Best of luck. And I'm very sorry for your loss. The last thing anyone needs is having to go through all this hassle after the loss of a loved one.
greedy banks
greedy banks (anonymous)   |     |   Comment #200
comment to #21 and #22
it's none of the banks business about his age, etc....it's what the Grandmother wanted!
The parents can assist and guide their 13yo son.   It's very interesting how people can deposit money into a bank and then they act like it's "their" money!! 
Anonymous
Anonymous   |     |   Comment #201
One does not have the capacity to contract unless they are of a certain age!
anonymous
anonymous   |     |   Comment #217
In Utah having this same problem with security services financial credit union. If anyone in Utah knows what I can do all I get is a run around the courts don't know what this credit union is asking for yet they insist it be done or the state will get my son's inheritance. Smh
Anonymous
Anonymous   |     |   Comment #218
If underage, may have to have a guardian appointed for financial affairs (not for the person).  I've seen an uncle appointed.  Or, check with a legal aid office and see how the parent can take "control" of the account.  Or, talk to the attorney for the cu
Anonymous
Anonymous   |     |   Comment #24
My father recently passed away and he (and my mother) have a couple of CD's which are titled His name, my mother's name and then "POD my sister's name & my name", my question is - if my mother cashes these and gives them to us, am I responsible for paying any type taxes? Everyone I ask has told me no, since I am listed on there already????
lou
lou   |     |   Comment #25
#24, it depends on the size of the CD and whether it exceeds the gift tax exclusion for your mother. Since your mother inherited the CD, you will not have to pay any tax if your mother cashes the the CD and gives you the money. However, your mother may have to pay gift taxes if it exceeds either the annual gift tax exclusion or her lifetime exclusion, which is actually changing on Jan 1 if Congress does nothing to change the law in the meantime. So if you are going to do this, you may want to accomplish it before yearend.
Paoli2
Paoli2   |     |   Comment #26
#24 This, imo, has nothing to do with the fact you "were" listed on your father's CD.  The CD was to go to you and your sister only after the death of both of them since your mom was joint owner.  How you were listed on CD plays no part of this unless mom makes you POD of it with her as owner.  As for taxes, I think Lou is correct about staying within the annual gift tax exclusion for whatever it is now or the lifetime etc.  You should not be hit with taxes and neither will  mom if she stays within the bounds.
Anonymous
Anonymous   |     |   Comment #27
I am listed as the beneficiary on my mom's IRA at Wells Fago.  Everything I'm reading sounds pretty cut and dry as far as getting the money, however, do you think because it's an IRA there would be any complications in receiving the money?
lou
lou   |     |   Comment #28
Yes, inherited IRA's have restrictions in how you can distribute the money without incurring taxes on the undistributed dollars in the IRA. You should have a company like Fidelity or Vanguard act as the trustee, so you are certain that you are in compliance with IRS rules. If you don't do the transfer correctly, you could have the entire amount subject to federal and state income taxes.
Anonymous
Anonymous   |     |   Comment #32
Thank you for your help!:)
Anonymous
Anonymous   |     |   Comment #33
I posted question # 18, i have an update with what happened and i wanted to know your ideas guys hope you could help me on this. I was able to get a certified copy of my grandmom's living trust as well as a letter coming from BofA regarding a release and satisfaction of claim statement with previous and new account number being set up on that. I faxed those documents as well as my Ids (passport) to BofA and told them I was one of the heirs of my grandmom (real estate property) and i just want to know if i was named as beneficiary of her POD account because last 2010 when my grandmom died the executor contacted me and informed me of being a beneficiary of a bank account (executor did not specify which bank) and was asking me to make an authorization letter for her (executor) to access the account but i refused to do so and she never talked to me anymore until now. My problem is when I faxed those docs to BofA and introduced myself to them they told me they cannot help me and I should talk to the executor. I also saw a document stating that the only asset declared in probate (formal administration) was my grandmom's life insurance ( no banks accounts,ira,401k declared) but bank accounts,401k, retirement accts were mentioned in her living trust but did not mention specific names of beneficiary. Any ideas why i should talk with the executor if it was a POD account with beneficiary? So far only BofA is the bank i see in the documents that my grandmom banked with when she was still alive that is why i contacted them regarding the situation but unfortunately they dont tell me any information. :(
Paoli2
Paoli2   |     |   Comment #34
#33  I don't understand what is going on with your grandmom's Executor.  From what I know the Executor takes charge of seeing that the people who the deceased left money or property to gets what they are due.  I would think the Executor would have to have knowledge of where the money or property is so they can give this to those who are named.  This is why they are named as Executors so they can take care of this responsibility and see that everyone named becomes aware of what they get and where it is.  Maybe this Executor is not aware of his/her responsibilities towards the inheritors.  If anyone should know where the banks are and how you get your funds, the Executor should.  I can see the bank wanting proof from you that you are the one named to inherit but your ID and a copy of the decease's death certificate is all I was ever told my inheritor would need upon my death. 

Your problem is the reason everyone should tell beneficiarys "ahead of time" that they are being named in a Will or if they are on a CD as a POD, give them the info of the banks ahead of time.  I typed up a booklet for the person as POD on certain of my CDs with names, addresses and phone numbers of any and all banks to contact upon my passing.  I am not leaving this to my Executor to do. In fact, today I updated the info as I always do when any CD matures and/or I change the bank which they are POD on.  I also included in their booklet info on how to handle any IRA accounts they "may" inherit since these must be handled differently from regular CDs.   This may sound nutty to you but if I were in your position especially with this Executor, I would call all banks in my grandmom's city and ask them if they have any open accounts in her name.  It makes no sense she would make you POD and not make her Executor aware of which bank it's with.  I would also call BOFA and ask to speak to someone higher up and ask their help in finding which accounts have or "had" your name listed as POD.  Maybe they matured before she passed and she used the money for something else.  If she had any "nicknames" for you be sure to request that BOFA check for you under any and all names she might have used for you.  Maybe you are giving them a name that is different from what she gave them.  Hope you work this out.
Joey
Joey (anonymous)   |     |   Comment #35
My son an I are named on my fathers accounts at Wells Fargo as POD. He is 13, a minor, and we are having trouble with this. We are in NC and I'm not sure on the laws but like someone else posted I was told I had to get a court ordered proof of guardianship for our son. I have no idead what to do.
joey
joey (anonymous)   |     |   Comment #36
Also they will not release any of the funds until we are able to do this. I dont understand why they cant release my portion. To become my son estate guardian we have to be bonded for 1.52% of the total amount our son is to receive. Sure would help if they would release my funds.
Anonymous
Anonymous   |     |   Comment #37
SENT W9 AND DEATH CERTIFCATE TO J.P MORGAN 401K.AS BENEFICARY WHEN DO I RECIEVED THE MONEY .WHEN DO THEY CUT CHECK AND SENDING IT TO ME
lou
lou   |     |   Comment #39
No, the CD is in your name
Paoli2
Paoli2   |     |   Comment #40
How does he know the CD is in his name?  I think the poster needs to see the actual CD and if his name is on it or not.  If his/her name is on the CD with the parents then it belongs to the poster and is not probatable.  Assuming it would transfer into the poster's name does not mean it actually was done.  This can be resolved by just contacting the bank and finding out whose name/names are on it.
Anonymous
Anonymous   |     |   Comment #41
Can anyone help me with this one? My step Mother died Nov. 27th 2012 in Calif. A community state. My Father still living, legally married and 84 years old. 40 days after death anyone can buy a death certificate for $20.00. There were two accounts in wifes name only. No signers, no benificeries, no POD. A hand written will saying at her death everything goes to her husband my Father. So 40 days after death funds are available. I call my dad to instrust him to go get the funds. (I live out of state) He goes to the bank and a grandaughter withdrew $41,500. The bank says the granddaughter came in with a death cert. and a signed notorized affidavit. We are still stunned. Any ideas anybody??
Paoli2
Paoli2   |     |   Comment #42
#41  I used to live in a Community Property state and am sooo glad I am not any longer.  The rules are quite different even if one has a Will.  You might want to google up information on California'a Com.Property laws.  First of all, she was your step-mom and she did leave a Will leaving the funds to your father.  Was this her "Seperate" Property or was it truly Community Property?  Being a step-son you would need to find out if you were in line to inherit any of the funds.  Community Property inheritances are not open and shut like other states where one can have a Will stating exactly who you want your property to go to.  Maybe the granddaughter had more of a right to the funds than a stepson of the deceased.   Your relationship to the deceased is different from the grandaughter and I am wondering why you seem to take it for granted the funds or some part of them belonged to you.
lou
lou   |     |   Comment #43
Consult with an estate attorney ASAP. Don't try to figure this out without legal advice!
Anonymous
Anonymous   |     |   Comment #44
Ok this is what I've been looking for.  My story has a slightly different twist.  My mother left a number of CD's for my sisters and I.  I'm am the POD/POA on the CD's but my sisters are listed.  After my mother died one of the banks made me close the CD.  The other two banks let me keeps them to maturity (1-3 years).  They never changed the CD ownership and the 1099-INT to my tax i.d., it remained in my Mothers name even though she had died.  They have all been 2 years collecting interest under her ss#.  I am not filing her taxes anymore because the interest is not enough to meet minimum filing requirement.  I also did not claim the interest on my returns in 2011 and soon 2012.  What do I need to do?  Do I need to go back and revise my returns to report the interest?
lou
lou   |     |   Comment #45
You really are asking two questions: What are the tax consequences and are the CDs property titled? I am no expert but I would think the POD designation is invalid and if anything happened to the bank, you may be ineligible for FDIC insurance. I could be wrong about this. Why don't you call the FDIC office in your region and ask.

As for the tax consequences, since your mother has been dead for two years, I think the following citation from Pub 559 is applicable:

"Interest accrued on savings certificates.   The interest accrued on savings certificates (redeemable after death without forfeiture of interest) for the period from the date of the last interest payment and ending with the date of the decedent's death, but not received as of that date, is income in respect of a decedent. Interest accrued after the decedent's death that becomes payable on the certificates after death is not income in respect of a decedent, but is taxable income includible in the income of the respective recipients."

This seems to suggest that you needed to include the interest income on your own return or prorata with your sisters if they are listed as beneficiaries. Alternatively, you could do nothing and see what happens with the IRS. In that you never received a 1099, I am not sure how they would ever know.

 

 
Anonymous
Anonymous   |     |   Comment #46
Thanks much.  As I thought, a conundrum.  I could blame it on the bank but I'm sure the IRS would not care that they mistakenly did not transfer the CD to our names.  Regarding invalid POD, we are about to get dispersed the final 2 CD's maturing next month so no risk there.  I will go see a tax consultant I suppose.  I was just going to let it fly as is but I'm feeling concerned about IRS coming after my dead mother and then after us at a future date.
Anonymous
Anonymous   |     |   Comment #47
As an addendum to above, would it be ok for me alone to amend my returns to include all of the CD interest from 2011 and now in 2012 and leave my sisters out of it so they don't have to refile themselves?
paoli2
paoli2   |     |   Comment #48
#47  Why don't you ask your sisters if they received any 1099Ints for these certificates?  If the interest was $10.00 or less for their portion, they may not have received any 1099Ints.  I would think your sisters are responsible for their own portion of interest from the CDs and you are responsible for yours according to what was reported to the IRS. 
Anonymous
Anonymous   |     |   Comment #49
Only my deceased mother has received the 1099-INTs because the CD's were never transferred over to our names and tax i.d.'s.  We have been cashing them out as they mature (as listed POD's) but haven't paid any tax on the interest because the interest and CDs themselves are in my mothers name still.  That was the original point of my post.
lou
lou   |     |   Comment #50
Technically speaking, if your sisters received some of the interest from the CDs they should probably amend their returns also.  However, if you decide to amend your return only, then just report 100% of the interest received. I don't think the IRS will pursue it as long as someone paid tax on the interest income.
lou
lou   |     |   Comment #51
You could do nothing. If the 1099's are in your mother's name, I don't see how the IRS will ever know. If they found out, you would just pay the tax.

 
Anonymous
Anonymous   |     |   Comment #52
Thanks, I would probably do nothing but I assume the IRS will send a letter in my mothers name someday about undeclared 1099's and I would not only have to pay the tax but a penalty as well.  Remember that we are listed on those 1099's as POD's so they know we are the beneficiaries.
lou
lou   |     |   Comment #54
#52, I understand - the safer route is to pay the taxes now and not to have to worry about the IRS someday. BTW, I have never seen POD beneficiaries listed on 1099's. Are you sure about this?
Anonymous
Anonymous   |     |   Comment #55
My name and my sisters names are listed as POD under my mothers name on one of the bank's 1099-INT forms but not listed on the other banks.  I think this is because the first bank has titled the account this way and it just shows up whenever printed out on anything.
Looking for an answer
Looking for an answer (anonymous)   |     |   Comment #56
My father just updated his Will and named my oldest sister as the Executor and also giving her a durable or spring power of attorney should he become ill and unable to manage his personal business matters.  My father has several CD's with differant banks and has all 3 kids listed as POD on each. My question is "should our father become ill and his medical cost requires money from the cd's to pay them can the durable or spring POA cash the cd's or change the POD's in order to cash the cd's?  We live in NC if this helps.
Anonymous
Anonymous   |     |   Comment #57
#56:  As long as it is a Durable or Spring POA, your oldest sister who is listed on it should have the power to do anything that your father would do if he were able.  I would think using the CDs to pay for his medical expenses would fit in this category.  When we had our POAs done this is the way it was explained to us.  This is why it is very important to trust the person who is named on the POA.  It gives them a lot of power which we have to trust will be used in the way we would if we were able.  I asked our banks what we would have to do if a CD were maturing etc and we were incapacitated and was told the person named on the POA must bring it in as proof of their right to take control at that time. 
Anonymous
Anonymous   |     |   Comment #58
My estate attorney recently told me that the Power Of Attorney gives you the power to make the POD changes as you describe above.  The only catch was that it depended on the banks that you were doing business.  Some will honor the power of attorney's authority to make changes to pod and some may not.  So it might be a good idea to discuss this with the banks that you currently have the C.D.  Your father's attorney who updated the will should also be someone you could ask for help on this.
Anonymous
Anonymous   |     |   Comment #59
When  purchasing CD's is it better to have POD or joint account with the person?  My concern is if someone has exhausted all of their Long Term care money in a Nursing Home, can the home take all of the money in the CD's if it is only POD?  My mother in law is concerned that her grand children will not get the money should this happen.  She has been told, she have enough Insurance  along with her pension for seven years.   Any ideas?
Anonymous
Anonymous   |     |   Comment #60
This is great information. I have a similar issue to someone above. My Aunt passed away last January and her CD's all had POD's on them. Most all were cashed out and given to the beneficiaries. Please note that I am the executrix for her estate; and the estate did not need to be probated. I didn't think another thing about it until I just recieved a 1099-INT from one of the banks and all of the interest that was paid out with the cd's to the bene's is now charged to her. The bank is telling me that it's because she was the tax reportable name on the account. I'm fine to pay taxes on any money received into her accounts, however why is she being charged for interest paid out to someone else? Also why bother getting the SS#'s for bene's if there's no reason. Thoughts anyone? Thanks.
Anonymous
Anonymous   |     |   Comment #61
My father recentley died and he always spoke of a CD he had for me as a beneficiary, The executor will not give me any information to say the least, and had the will changed fraudently,   How can I find out which bank it would be at, if I do not know at this time, Please help, Thanks much.
Anonymous
Anonymous   |     |   Comment #62
I don't understand why there is so much confusion over what is going on with CDs when the owner passes.  Aren't there any attorneys involved with these Wills?  If there is an Executor named, there must be a Will.  Being an Executor is a very important position and I think there can be legal ramifications if they abuse their responsibilities.  If you are mentioned in the Will, the Executor must notify you.  If it were me,I would try to find the attorney who did the Will and let him know what is going on.  Maybe you are not really in the Will.  People do change their mines before they become deceased.
patricia dempster
patricia dempster (anonymous)   |     |   Comment #63
i had are letter saying i was are beneficiary abut 12 years but i lost the letter i know the letter was from edinburgh i know i was left alot og shares but i dont know who to contact
Anonymous
Anonymous   |     |   Comment #64
my grand mother passed about 2 months ago. and she had a cd for me at bank of america.. well the issue is that in the state of ny the grandaughter cannot obtain the death cerifacte.. for only certain reasons (as for me being the beneficiary) i would need proof. well i dont have any proof. i only seen paperwork with my name account# amount etc. the big issue is my mother cleaned out my gma house and took all her paper work before i had a chance to get anything and me and my mom has NO relationship what so ever . So i believe my mother was able to provide the death certicate to all my grandmother banks she had. so they made her something of state.. meaning she has access to everything my grandmother has. i dont how i would be able to get proof to get the death certicate. and also to find out if my grandmother and anything else left for me.
lou
lou   |     |   Comment #65
#64, talk to a lawyer.
C.G.
C.G. (anonymous)   |     |   Comment #66
This is is a great site!  I wish they could add a "printer friendly" icon for the articles next to the Facebook and Twitter icons.

Also, my father recently passed, making me the last member of our family line.  Does anyone know about making non-profit and charitable organizations beneficiary to bank accounts, savings bonds and insurance policies?  Are social security numbers needed?  Does some representative have to sign? 
TJ
TJ (anonymous)   |     |   Comment #67
I live in Wisconsin.  My mother just passed on and left a will. The personal administrators we agreed upon in probate. Just today we found out my mother left a CD of 115,000.00. The personal administrator said she had to issue checks to two people..one her mother and the other half went to the other personal administrators because she said they had P.O.D. accounts. Now the att. they hired told the family this matter would have to be separate from Probate. We are also excluded from all information in reference to this because of probate..so were told.  We do not believe our mother left this money to these two people. How can we get the paperwork for this CD?  We are disabled and can't afford an attorney.  
Anonymous
Anonymous   |     |   Comment #68
If the CD had designated POD beneficiaries, then the bank  has the sole responsibility to issue the money in the correct amounts to the designated beneficiaries.  The bank should not and is not allowed to distribute the money to anyone else  other than to the beneficiaries.  If someone other than the bank is distributing this POD money, then I would suspect something is not right about this and I would head straight to a lawyer to get advice on this.
paoli2
paoli2   |     |   Comment #69
If a spouse has several bank CDs in her name only POD to an adult child and her spouse has to go into a nursing home, does Medicaid have the right to claim those CDs even if the other institutional spouse's name is not on them and has no access to them?  Thanks for any info you can provide.
lou
lou   |     |   Comment #70
Yes, up to a certain limit. The spouse is allowed some money, but the limit, if I remember correctly, is quite low. This is the principal reason why I bought long term care insurance.
paoli2
paoli2   |     |   Comment #71
Thanks Lou.  I misunderstood and thought they could only go after the resources, income and assets of the Spouse who is institutionalized.  I guess they add up all accounts if you are married no matter which one needs the nursing home.  I knew the Community spouse gets to keep "something" but that must be after they take over all accounts for both of them.
Anonymous
Anonymous   |     |   Comment #72
Can anyone help me? My Grandmother set up a CD Account, with me as her POD. And it Specifically says that only she in person can make any changes to the CD, not unless she is proven mental incompatent in a court of law. So how did the POA get my money. Is this legal, because I know that she was not taken to court.
paoli2
paoli2   |     |   Comment #74
#72:  Sounds like your grandmother did not realize what power she was giving to the person who is her POA.  Frankly, I did not realize they could change titles on a CD but I guess #73 is right.  You would have only gotten the CD after her death so if she is still alive and competent, maybe you can tell her what the POA did with the CD and find out if she is aware of it.  She may not have any idea what is going on.  I am the POA for someone but I would not consider changing titles on any CDs or bank accounts they had unless they specifically asked me to do it for them.   Before you do anything else, I would speak to grandma and maybe she can change the CD back to you being POD if she is well enough to still do this.  You did not make it clear if grandma is still alive and competent.  If she is, I don't see why you need to get a lawyer. 

If she is deceased, you can get a free consultation with an elder attorney and find out how much they will charge to handle this for you.  They are not all as expensive as you might think. If the CD is a goodly amount, their charge might be worth it for you.  Best of luck!
Anonymous
Anonymous   |     |   Comment #75
#74/Paoli2

Suppose in the future that the person you are representing as POA becomes incompetent and one of their CD's matures.  As acting POA, do you have the authority to reinvest in a new CD, perhaps at another institution that has the highest interest rate and do you have the authority to designate the POD beneficiaries to the CD that is in best interest to the one you are representing?
paoli2
paoli2   |     |   Comment #76
#75:  Yes.  There are two types of POAs and I made sure to get the type which does give me this power. What good would a POA do if it did not cover all problems that might cause someone to need someone else to make decisions for them?  This is why I feel one does not give this authority to just anyone.  You must trust the person you are allowing to basically do what you would want done. 
Anonymous
Anonymous   |     |   Comment #73
Re: #72: I had the same thing happen to me.  The POA becomes 'your grandmother' legally by becoming POA.  Then he can raid your grandma's assets freely, including changing CD titles/closing her CD.  There are elder law attorneys who specialize in fighting thbis, but they are very expensive.  Basically, they attack her competence when she granted the POA or attack the implementation of the POA, saying he can't become POA since grandma is competent and grandma now wants the POA to cease being POA.
Anonymous
Anonymous   |     |   Comment #77
paoli2, are you licensed to give legal advise in all the states?
paoli2
paoli2   |     |   Comment #78
#77  Are you licensed to act like an idiot, imo, on all discussion groups or just the ones I am on?  BTW, what I am doing is interchanging information with fellow posters just like others are.  Is there anything wrong with that?  If you want to check out more on POAs here is a link you can use:

http://www.ehow.com/facts_6790259_difference-general-durable-power-attorney.html

One does not have to be an attorney to know what POAs are especially if you use them. 

 
Anonymous
Anonymous   |     |   Comment #79
paoli2, You're acting like the idiot.  #75 asked a legal question and you gave a Legal answer.  All I did was inquire if you are licensed to give legal advise!
paoli2
paoli2   |     |   Comment #80
#79 We have a regular poster in our group who kindly responded earlier with answers to questions I would think would be of the same nature as the question I answered and yet not once did you ask him about being "licensed" etc.  I did not see a "smiley" face by your question to me so I considered you to be serious about the issue.  I can take a joke but I have to know it's a joke.  Why am I an idiot because I did show proof for my response?  Frankly I don't think either one of us is an idiot or we would not be interested in this group.  Have a nice day, anyway.
Anonymous
Anonymous   |     |   Comment #81
Do you always have to get the last word?
paoli2
paoli2   |     |   Comment #82
Yes.  Maybe I was a lawyer in another life.  Do you always have to have the last post especially to idiots??
Anonymous
Anonymous   |     |   Comment #83
Paoli 2,

Here is the kicker and what my lawyer told me when I was designated as durable power of attorney on my mother's will.  "Some banks may not permit or authorize the POA to make changes as described in#75's comment."
paoli2
paoli2   |     |   Comment #84
#83:  A Power of Attorney is only supposed to be effective during the lifetime of your mother.  Why would you need it after her death?  Once she dies, her Executor takes over.  The banks would not permit you to make any changes you speak about because the POA would no longer be valid.  Your lawyer is correct, imo.  If your mother is still alive, she should designate what changes she wants on any CDs now or put it in her Will what she wants.  Any POAs I have are only effective during the lifetime of the person.  BTW, I am not an attorney.  I am only sharing my personal opinions and experience.
Anonymous
Anonymous   |     |   Comment #85
my minor child received a small in trust from an aunt who passed. We went to go get it but they said i have to go to court to get legal guardenship. we called broward county courts and get the run around. If me and my husband have to hire a lwayer it would cost more then the cd is worth. chase bank is very unrealistic we all 3 went to bank me my husband and child. with all sorts of documents including death certificate. but it was no good. what next?
paoli2
paoli2   |     |   Comment #86
#85:  Chase Bank??  The PEOPLES Bank?  I had the biggest fight with the District Manager of the Chase I do business with because of a problem so I am not surprised the Peoples Bank is making this as difficult on you as possible.  I think there may be a way around this for you which could be cheaper than getting a lawyer and going through guardianship.   Why don't you just find out if you can get a Power of Attorney over a minor child and if you can, you will be able to handle everything for the child and Chase cannot make you jump through hoops.  I solved all my problems with Chase with just an inexpensive POA on my family members but they are adults.  Try to get a "free" consultation with a lawyer and fine out what your options are and if the child is too young for you to use the POA.  It won't cost you anything unless you decide to allow the lawyer to draw up the POA for you and you can find out any costs before doing anything.    That "free" consultation with a lawyer can answer a lot of your questions and maybe save you money you don't have to spend.  Best of luck to you.
Anonymous
Anonymous   |     |   Comment #87
#86 - I'm considering opening a checking acct with chase for my SS check.  Everything seems ok.  However, would you share your "bad" experience with Chase ?  Nothing personal, just generalize the problem?  Thanks.
paoli2
paoli2   |     |   Comment #88
#87:  I just  returned from Chase.  I have our checking account there too.  The problem in a nutshell as the manager told me this morning is "they have to be compliant with all rules".  My problem was that for years they allowed me to do  certain ransactions one way and recently decided I had to do them another way.  Maybe their corporate office is being stricter on the rules and not allowing the managers as much leeway as they had in the past.  I don't mine following rules that everyone else is following but it seems they are allowed to "stretch" the rules for certain customers.  I guess I am no longer one of their "certain" customers so I am trying to get our other banks to redo our checks to be compliant with Chase's rules.   With Chase it seems to all depend on who is the manager of the bank you are dealing with.  Four other Chase banks I called said they do not make their customers do the transactions the way my bank does.  However "when in Rome etc.".
BCVP
BCVP (anonymous)   |     |   Comment #91
My father has 2 large CD's which name my sisters and I as beneficiaries.  My step mother has mentioned recently that she feels it is unfair that he is leaving this large sum of money to us.  They do have a will which I believe leaves her all other assests including their home. She also has POA if he is incapacitated.  Simply put, can she get the money from these CD's either directly as POA if he is incpacitated or by suing for at least a portion of them.  This is in Ohio. 
Anonymous
Anonymous   |     |   Comment #92
To #91 - If Ohio is like Georgia and Mississippi, with a POA, your step mother can change the beneficiaries. If your Father passes away prior to the POA being used, she should have no grounds to sue. A POA is a powerful document and there needs to be complete trust that the one who has the POA is doing what their charge has directed and wanted to happen. Sadly, this is not always the case. Greed is a terrible thing and there is way too much of it now days. The only way I know to prevent this is if you and your sister were joint owners on the account; then even the POA has to get your signature to make changes to the account. Good luck to you, sounds like a bad situation.
Anonymous
Anonymous   |     |   Comment #93
Ok I have reason to believe I am a benificiciary on a Pod,since I am a niece,not a daughter,I cannot get a copy if the death certificate,what can I do to go to the bank and claim the funds.....
Anonymous
Anonymous   |     |   Comment #94
I really need some advice,I am a niece,not an immediate relative,so I'm not entitled to a death certificate..I have reason to believe I am on a pod account,what can a bank tell me with no death certificate..I'm talking,small town Tennessee.there are several banks and numerous accounts,how can I find out if I'm designated on one..
Anonymous
Anonymous   |     |   Comment #95
#94  If you are POD on the deceases CD, he/she should have given you some info about where the CD is before they passed.  Since they didn't, you might want to contact the Executor of the Will and see if that person can tell you what you inherited and where it is.  If you find out where the bank is, the Executor should be able to get you a copy of the death certificate so you can claim what belongs to you. 
paoli2
paoli2   |     |   Comment #96
#94  If nothing else pans out for you and you did mention it is a small town, if it were me, I would call every bank in town and give them my name and ask them if they are holding a POD cd with me as beneficiary for the account of  ____________________________ (deceased person's name) and tell them the person is now deceased and this is why you need the info.  I probably make more calls than that to get the best CD rates so it sure would be worth it if I thought there was a POD CD sitting in some bank in my town with my name on it.  Your best bet would be to get the Executor of the Will to help you.  That's why we have Executor's on our Wills to see that everyone gets what the deceased wanted them to get.  Best of luck.
Anonymous
Anonymous   |     |   Comment #97
My past experience on this is normally the bank will tell you if you are listed as POD of a deceased account holder.  If you are listed as POD, then you have to present a death certificate to the bank to get the funds transferred into your name.  However; it is wise to stay on good terms with the executor to make it easier for you to get a death certificate to present to the bank. 
Anony626
Anony626 (anonymous)   |     |   Comment #98
I have a question and this seems like the right forum to ask it.  My Grandfather passed away last year. Prior to that I was put on as a benificiary to a CD of his by my Father(his son).  My father did this because a bank employee reccommended it because at the time the banks were failing and were only covering so much so the theory was the more benificiaries the more money covered. My Aunt is also on it. It has come to term and we went to the bank today. 

      Here is my problem, when my Dad put me on it I was under the impression that I was only the benificiary if my Father passed away. In other words I would get his half and my aunt would get hers. That was not the case today. We were all issued checks in equal amounts. My question is this... will I be taxed on this? I immediately gave my check to my father for him to split between my Aunt and himself. when I told my husband he flipped saying it will **** up our taxes and we will be investigated by the IRS. HELP. By the way we live in N.Y.  Any info would be greatly appreciated. LB
Anonymous
Anonymous   |     |   Comment #99
ANONY626:

I am not a tax expert, but here is my two cents on your questions:

There are a couple of questionable situations here.  You possibly may owe some tax on your part of the interest earned on the cd prior to the maturity of the cd.  Contact the bank and ask them if they are going to be sending you personally a 1099INT on any of the interest earned on the cd.  If so, you probably will owe taxes on the interest.  You possibly will also have to pay some gift tax if you gave more than $14K to your father and more than $14K to your aunt.  $14K is the annual limit that you can give away per person without incurring a gift tax.  I was wondering, if you did indeed owe taxes, maybe your aunt and father can pay for the taxes that you incurred since they ended up with all the money.   
Anonymous
Anonymous   |     |   Comment #100
ANONY626:

 

This is previous #99 again.  If you do owe gift tax, I think a way to avoid paying the taxes is to apply it to your lifetime exclusion.  You have a lifetime exclusion total amount of $5.25 million.  So you may want to apply the amount over the yearly allowable gift amount of $28K that you gave to your father and aunt.  If you decide to do this, you will have to file it on your 2013 income tax return.  Sorry but I do not have a clue what you do on New York state income taxes.
Anonymous626
Anonymous626 (anonymous)   |     |   Comment #101
Thank you for your help. I have been scouring the internet for a definitive answer and cant find one but this helps. A follow up question if you dont mind. We were each issued checks for 25,000 $  so If my Aunt and father split that it is like 12,500. So I should be clear of the gift tax right? Also do I have to claim that check as income? I was a POD on it and from what I could find it says you do not ...only like you said maybe taxes on the interest.  My father did say he would pay the taxes incurred. Now I just have to worry if I have to claim it as income! thank you again for your time.
Anonymous
Anonymous   |     |   Comment #102
For year 2013, there is no limit on how many people that you can gift $14K maximum per person and still be exempt from a gift tax.  So if the check your received was $25K and you gave your father $12.5K and your aunt $12.5K, then no gift taxes have to be paid.  If the check that was issued to you from the bank was in result of you being listed as a beneficiary (POD / Payable on Death) of your grandfather's certificate of deposit then this is considered an inheritance and you do not pay any federal income taxes.  Again I do not know what taxes might apply (if any) in the state of New York. 
FBN
FBN (anonymous)   |     |   Comment #103
My father recently died. He had all his accounts in a trust with me as co-trustee. Mom passed away in 2005. They had the A-B trust arrangemnt but I recently found ou that he had not changed the tax id on the trust from his SSN to the trust's tax ID. THis could effect me now having to pay state estate taxes. If I request the bank to change the tax id would that be ok and would they comply to correct the error?
KAY
KAY (anonymous)   |     |   Comment #104
I am the recipient of a POD account at TD Bank in New Jersey and I am not a relative of the deceased person who named me on the account.  I went there with a certificate of death and my ID and they said I needed some kind of inheritance tax paper from the Surrogates office.   Surrogates office said it doesn't handle that and I should contact NJ State inheritance tax place.  I called them and they said I need to get in touch with the Executor.   I thought POD's had nothing to do with the estate or Executor.  I called TD bank and told them about the run around and they said I still need to fill out this (tax paper) before they will release funds).  I spoke to Fulton bank in my area and they said all they need to release funds on a POD account is the COD and my ID.  Does anyone know what TD Bank is talking about?  Is this because I am not a relative of the deceased person.
Anonymous
Anonymous   |     |   Comment #105
My sister and I have been trying for over a year to have Wells Fargo release money her 2nd husband deposited into a POD  (from another investment she had from when she was married to our father) to pay for her care, she has alzheimers and her second husband walked out on her. The manager at the bank keeps telling us to contact our lawyer and tell him to contact thier lawyer but wouldn's tell us why. I only fully became aware of what a POD was and didn't realize we could only use it after she died. Well she needs it now. But she is unable to tell the bank that.  We both have Durable Power of Attorney which means nothing to them. Last time we were in the bank we took her there hoping she might be able to state she wanted her money but she was unable to do so, the bank manager wanted to interview her by herself and I said no she is ill, and unable to answer his questions. He said there was nothing he could do for us. Both my sister were quite angry in the bank and were asked to leave, and later that day police came by my house and the bank had accused us of drugging our mother and taking her in trying to get a hold of her money. Then the police went and interviewed her at her care home. I am appalled at thier help and worried sick about the funds we are going to need in order to take care of her.
Anonymous
Anonymous   |     |   Comment #106
My uncle was in a nursing home for over a year.  Nursing home was applying for Medicaid but for unknown reasons, he never received Medicaid.  He passed away and left a small POD account to me.  The nursing home has an attorney who is trying to get the county of social services to pay his bills and appeal Medicaid coverage.  I received a letter from this attorney asserting that the POD funds were to pay for my late uncle care.  There is no will.  Is this money due the nursing home?
paoli2
paoli2   |     |   Comment #107
#106  If all his nursing home bills were paid for the year he survived, it sounds like he had run out of money and that is why they were applying for Medicaid.  If he had lived, any funds in his name would belong to the nursing home and that includes the POD funds. However, unless he owed money to the home for care before he passed, I would think the POD money would belong to you.  The nursing home or Medicaid (if he had gotten it before he passed) do have a right to claim pay-back for his care if they found he had money which could have been used for his care.
Anonymous
Anonymous   |     |   Comment #109
Thank you.  To the best of my knowledge he told them he couldn't pay for his care  and that is when they applied for Medicaid.  Not sure what happened but he was never put on Medicaid.  He did own a piece of property.  My thinking is that this would go through probate and the nursing home can recover their funds through this method and the POD would be mine.  He did not have a will.  Am I thinking correctly?
Anonymous
Anonymous   |     |   Comment #108
Good luck on this.  What about your Uncle's home or other property?  They may go after that also.
Anonymous
Anonymous   |     |   Comment #110
They can go after his home since he died without a will and that is fine.  The POD account is not a probate asset.
paoli2
paoli2   |     |   Comment #111
From what I have been told is any asset which is in his name and he has control over is available for them to go after.  That CD is still money in his name and doesn't belong to another person until he dies.  Even if it isn't probatable, it is still a source of money he owns and they can go after it.   That is the difficult part about going into a nursing home and ending up on Medicaid especially if you don't have a spouse on the outside who can use some of any money to live on.
Beth R
Beth R (anonymous)   |     |   Comment #187
Absolutely Not! If you were named as a POD beneficiary, then those funds are Not part of his estate. Only funds from the Estate can be subject to any requirement for paying off debts. Creditors (including nursing homes, hospitals, etc.) know this, but some shady ones try to scare the relatives into paying off debts using funds that are Not part of the estate.  Shame on them!!
Anonymous
Anonymous   |     |   Comment #112
My Mom is in a Nursing Home.  Prior to here receiving Medicaid, the home asked me to take out 4 CD's for her grandchildren with POD on them.  The home insisted that I do this and not knowing any difference, I did.  Now when Mom passes I will have some explaining to do.  Please comment.
paoli2
paoli2   |     |   Comment #113
This is the strangest case I have ever heard of with a nursing home.  Was it the Social Worker who told you to do the PODs? Normally, they would take all CDs with your mom's name on them since they belong to her and are assets until she dies.  I don't see how the grandchildren could ever inherit them unless your mother has so much other funds to pay for her care.  If she did, she would not need Medicaid in the first place.  This is very odd.
Anonymous
Anonymous   |     |   Comment #114
Read about medicaid clawback provisions. 
Anonymous
Anonymous   |     |   Comment #115
New question on bank accounts!

If there is somebody that could answer this, please: I am married (13 years).My only daughter is not my husband's daughter. Same with him, since it is our second marriage. Our attorney answered that  if one of us dies, the money in the bank and investiments will go to the surviving spouse, therefore if he dies before, I will make sure his daughter gets half of everything before I die because she is not my heiress. But what happens if I die first? I just have to trust that my husband will do the same?Thank you for any input! Mara.
paoli2
paoli2   |     |   Comment #116
Mara:  Personally, I do not like to leave anything to chance when it comes to what a spouse will do concerning my child after I am gone.  Have you considered putting some funds in your name with your daughter as POD?  This avoids probate and makes sure she gets at least a part of her inheritance.  You both should make sure to stipulate i your seperate Wills to make sure the daughters get what you want them to get.  If your husband remarries if you die first, you are rolling the dice on the next wife who may have different ideas about what she wants to do with any money.  Now is the time to take the steps to protect your daughter's interest and the same goes for your husband.  I prefer PODs because there is no doubt who will get the funds when the owner dies.   
Anonymous
Anonymous   |     |   Comment #124
#116 - paoli2:  Don't count on this POD designation always working as you stated.  The clerk that set up your POD account(s) probably only had 2 weeks training.  She's just a clerk, not a lawyer.
Next time your at the bank, ask a bank officer what "documents" will the bank need to release the funds to the beneficiary.  Have the bank officer put it on official bank paper and sign it.  He will be lost for an answer.
Probate court involvement?  Maybe.  Depends on the bank, state, local, and federal laws.
paoli2
paoli2   |     |   Comment #125
#124  I have already done what you suggested.  I called every bank and credit union and asked them exactly what the beneficiary (POD) needs for them to release the funds to them upon death of Owner.  They have a special department which handles this and I was told all the beneficiary has to do is call them and let them know the owner (me) of the CD is deceased and they will give them instructions for what they need to release the funds to the beneficiary.  Usually in all cases, they have to submit a certified copy of the Death Certificate and a copy of their (the beneficiary) driver's license so the institution can verify they are the person on the CD as POD.  Once the verification is processes, the beneficiary can tell them how they want the funds to be handled (basically where to mail the check or checks).  I have typed all the info and put it in the folder I have set up with copies of all CDs the person is the beneficiary of.  I have included all phone numbers to call to make it as easy as possible for the person.  I was surprised to find out that the beneficiary never has to make a personal appearance at the bank or cu.  Just fax or mail the needed documents.
Anonymous
Anonymous   |     |   Comment #126
Did you get a bank officer to list the required documents on official bank paper and sign it?  If not in writing, all you have is "here say" and easily deniable.
paoli2
paoli2   |     |   Comment #127
Sometimes we have to use a little common sense with these things or we can turn into a mass of paranoia.  Think about it.  What else can they do with CDs if the owner dies?  Why would they have a beneficiary listed if they don't intend on releasing the funds to that person with needed documentation of the death?  They would illegally withholding funds to the person it belongs to.  I, of course, will, as the years go by, if I am still able to "hoopla", keep in contact with all my banks and cus to reverify the rules and see if I have to update my info.  Other than that, I will not make myself a nervous wreck and hasten the day of my demise.
Anonymous
Anonymous   |     |   Comment #128
Paoli2,  I used to live by your theory but that has recently changed by a problem I'm currently having with a bank's titling of an account several years ago.
I have an account problem due to the bank changing (or was wrongly told) how to title the account.  The title on the account is "John Doe or Jane Smith".  I questioned if one of us was to die who would get the funds.  I was told by a bank VP that the banks default title was "Joint with Survivorship" and the funds would go to the survivor outside of probate court.
Now several years later Jane Smith has passed.  Also the VP doesn't remember the conversation and states the account is co ownership (ie: 1/2 mine and 1/2 Jane's estate).  So that means probate court must be involved.  What really pis...s me off is Jane's name was there for convenience only.  All the funds were mine.
From this day forward, I will have everything in writing and signed by a authorized person.
paoli2
paoli2   |     |   Comment #129
I'm so sorry to hear about your problems with the signatures.  I don't know how we can get an "authorized" person to sign off on a CD that supposedly is titled correctly.  If it states Joint with survivorship, they have to give it to the second person on the account.  Didn't you show them your original CDs   The VP must have gone to idiot banking school because the "or" in the title made it a  "Joint" account and if it had "with Survivorship" how could he consider it the way you describe?  This is the reason we use these titles to avoid Probate.  If we allow idiots to handle our accounts, we will all be joining them in "idiot institutions"!  I just got off the phone with Navy FCU and the SAME Supervisor.  I am determined they WILL do my CDs correctly if they have to drag me off to the Coo-Coo Institution for my so called "hooplas".  Be nice and you will cry later!
Anonymous
Anonymous   |     |   Comment #117
I have a question. I am listed as POD on several CD's owned by my dad. The plan is to split the CD's among my brothers and sisters. There are 11 of us. Should I have my dad (if possible) list all of us as beneficiary on the CD's? I don't know much at all about the tax laws. I am thinking that I will get a 1099 when my father passes away and I will have to pay all of the taxes when I will be splitting it evenly among my siblings. I live in PA.
lou
lou   |     |   Comment #118
Yeah, list them all as beneficiaries. If you don't, you might have to pay gift taxes or use up some of your gift tax exemption.
Anonymous
Anonymous   |     |   Comment #119
A gift is a gift is a gift....how does listing anyone circumvent potential gift taxes if one is otherwise subject to them?
paoli2
paoli2   |     |   Comment #120
How is being a beneficary of CDs the same as a "living" person giving you a certain amount as a "gift"?  If they are dead, it's not in the same category as a gift from what I always understood.  It becomes an inheritance.  Inheritance taxes and gift taxes are two different things.
lou
lou   |     |   Comment #121
"A gift is a gift is a gift....how does listing anyone circumvent potential gift taxes if one is otherwise subject to them?"

Think about it. If he is the beneficiary of the entire CD and he then splits the money with his siblings, he is, according to the IRS, gifting the money to them.
Anonymous
Anonymous   |     |   Comment #122
Lou,  pretty straight forward to me, but remember who you are trying to explain this to.  It may be a worthless effort.
paoli2
paoli2   |     |   Comment #123
All the poster needs to do is read the IRS rules for gifts and for inheritances.  They are not birds of the same feather.  However, I do agree with Lou.  The "beneficiary" becomes the owner of the CD and if he passes it on after receiving it to his siblings, he does turn it into a "gift" and must follow the rules for "gifts".  Not hard to understand especially with a copy of IRS Pub. 17. 
Hoody
Hoody   |     |   Comment #130
I decided to go with all "Joint" accounts, the last 3 CD's I made at Navy were all Joint, the other 2 POD's will be moved once they come due to another bank and re done in "Joint" names.

The only reason I used POD was cause I thought that was the only way to go with the ins limits.
Pete
Pete (anonymous)   |     |   Comment #131
I have a question regarding being a beneficiary (POD) on a bank account. My grandmother is still alive and I am a beneficiary on one account at Wells Fargo (I also have a separate power of attorney, although I'm not sure if that is relevant). I have a hefty student loan debt from graduate school that far exceeds what I may receive upon her death.  

My questions are as follows:

1) Am I required to report the funds as "income?"
2) Would I need to report the income to the government (who now owns my student loans)? I am in good standing with the student loans, but don't want to have to increase my payment amount. Any way around having to give up the money?

Basically, I would like to know how to keep the funds to maybe invest in property. 

Any advice would be greatly appreciated!
lou
lou   |     |   Comment #132
No, you don't have to report it as income. Since it is not income I don't see why you would have to report it to the govt for your student loans. Not sure, however, about the second answer.
lou
lou   |     |   Comment #133
You will have to make sure the taxes are paid on any interest income as reported on the 1099.
MaryJane
MaryJane (anonymous)   |     |   Comment #136
Ohio: I was dad's POA.....and POD on 1 savings account.  3 days before his death, he asked that I withdraw all the money from that account (I did not), bring him the check.  Mentally he was fine. I withdrew some of it, showed him the check which satisfied him & never left him again. My question: My sister wants all the savings money & refuses to pay his final bills and any bills before his death such as assisted living rent, utilities, meds etc. She has a will stating she gets everything & filed with court. My understanding is as POA on record, I had a right to withdraw as as I felt needed & as he instructed me but she says my POD cancelled when I withdrew.  I've had 1 attorney say true, another say wrong since I did nothing to show malice & the money would have been mine in 3 days anyway. Which is correct?
MaryJane
MaryJane (anonymous)   |     |   Comment #137
how do I get this to the top of page?  Sort by date doesn't work.
Anonymous
Anonymous   |     |   Comment #138
I am not a lawyer, but unfortunately I think you lost your POD status on the money that you withdrew and it now is part of the estate.
paoli2
paoli2   |     |   Comment #139
This is new to me.  How could the POD be cancell just because you used your POA on the account?.  That would mean that anyone who is POD on someone else's accounts cannot be the POA for them also.  In your case things got squirrelly when your father passed so soon after you used the POA to take care of the withdrawal for "him" but that certainly should not mean it cancels out your rights under the POD.  The savings account should have to abide by the rules of the POD and give the rest of the funds to that beneficiary who I figure is "you".  You may have to get a 3rd attorney's opinion on this one but if it is a decent amount of money, you would be going against your father's wishes if it ends up in Probate when he really meant for you to have.  Your sister should get whatever is left after the POD is given to beneficiary.  From what I understand, a Will does not supercede what is listed in banks etc. as beneficiaries.  That is why we all need to make sure we have beneficiaries listed for all our assets to avoid Probate.
Anonymous
Anonymous   |     |   Comment #140
I've heard Ohio has some strange laws and the banks make up their own rules.
Anonymous
Anonymous   |     |   Comment #155
Not banks' rules.
paoli2
paoli2   |     |   Comment #141
Note:  You do know that the POD on the savings account only gives you what is "left" in that account.  I agree with #138.  Unfortunately once you pulled it out it was your father's money gain and does become part of his estate.  Too bad you made that withdrawal or whatever was in the savings would have been yours.  In this case, the Will does give your sister the money she is due.  That is so odd that your father would have you withdraw so much at a time when he was so ill.
Anonymous
Anonymous   |     |   Comment #142
If the check is still outstanding try to have it returned to the POD account...after all after x no. of days a check is generally invalid and the funds should revert to the account.  "You" generally don't have authority to cash a check after death since the POA does not survive death!  If previously cashed, then the funds should go as 138 stated.
Anonymous
Anonymous   |     |   Comment #144
Held on to it for 2 months...bills to pay. Had no choice.
Anonymous
Anonymous   |     |   Comment #146
2 months after passing
Anonymous
Anonymous   |     |   Comment #147
bills to pay...no other monies.
Anonymous
Anonymous   |     |   Comment #150
Oh wow...law so unfair. So you're saying since there were no other monies & no one came to help dad in any way including visits, I should not have paid his assisted living & had he lived, he would have been thrown out plus charged interest for everyday he did not pay?  She had not seen/talked with him since she conned him into signing will 6 yrs ago including when he asked for her in Hospice. No funeral, no nothing except filing will 3 months after passing. He loved her.  So unfair.
Anonymous
Anonymous   |     |   Comment #156
He just wanted to see the cashier checks. He asked it to be done to ensure no one else got the money. It took him 3 wks to talk me into it.  Sibling told him she went to bank several times in the last year asking questions about the account & kept after him to add her name too.  I think it scared him that they would tell her confidential information but they did.  I worked 40yrs for it. Never taken a penny from either parent plus worked 40 hrs a week job. 13 yrs spent as guardian for one, it was very difficult.  Law states I was to get paid but I never did.  10% or $1,000 a year.  siblings did nothing except ask for $$ over the years.
Anonymous
Anonymous   |     |   Comment #145
Had a $3,000 rent bill to pay to assisted living apartment 1 week after hospitalization.  There was no other monies to pay with.  We did not expect him to pass (6 wks later). Had to pay his bills, utilities at his home (he kept it), property taxes due, income taxes, etc. Have all cancelled checks along with bill. No one seems to care.  She is threatening me with jail, lien on my home, etc. She wants it all without subtracting any bills. Her lawyer says no one is responsible for his bills but him regardless if they threw him out of assisted living.
Anonymous
Anonymous   |     |   Comment #148
If successful....will have to file bankrupt...his hospital bill alone was $71,000. Almost all monies is gone due to his bills. Medicare isn't that good.  H
Anonymous
Anonymous   |     |   Comment #149
All of this (also) suggests that readers need to talk about assisted living or medical options....  For example, as some of the ads state in California (Medi-Cal (or Mediaid in other states) is not just for the poor."  Earlier postings noted Qualified Medical Annuities.  A professional should be consulted....  All are primarily funded by the Feds and administered by the States...all are funded by previously provided taxes. 
Anonymous
Anonymous   |     |   Comment #151
Dad passed lived/passed away in Ohio. I live several states away. If sibling should win a judgement against me in Ohio, can she come after my property out of state? Retired, no savings because I paid all medical bills, living expenses and followed his instructions for the rest. That's all I think about day & night, can't sleep worrying. She refuses to talk with me or try to come to some agreement.  She wants 100%.  Can she take what little I have left? I only have about 60% equity in home. Can she take that too? 2 lawyers, 2 different ideas.  If anyone has any ideas, pls share as I can not even find anything on the internet about Ohio laws. thank you all so much. 
Anonymous
Anonymous   |     |   Comment #152
Also, there is another will, an updated one from what she has but I can't remember the attorney who did it. He used his caregiver's attorney but she passed away last year. Her family doesn't know anything. Any ideas how I can find it? I didn't ask for a copy because I assumed it was in the house some place. If it was, the sister took it. It was very simple. Will states all split between children & grandchildren included except the POD acct.  thank you all for your help and opinions!
Anonymous
Anonymous   |     |   Comment #153
HELP anyone?
Anonymous
Anonymous   |     |   Comment #159
Did he have a safe deposit box, might be the location of the will? Also, if you know which city the will was created in, if it is not a very large city, there may not be that many estate lawyers who create wills. 
Anonymous
Anonymous   |     |   Comment #168
Attorney is looking for a possible updated will.  No safe deposit box. If the account owner, Dad, puts the same person as POD & POA, it is legal & will stand in court.  I may have to account for every penny but that should be in the end of it.  If there would be another will found, of course it will be filed. She now states my name does not appear on any accounts which is totally untrue. My name appears on all accounts. Dad had me check at the bank numerous times up until he passed then I checked after his death too. Thank you all so very much for your help. I haven't even had a moment to grieve & its been 9 months.
Anonymous
Anonymous   |     |   Comment #143
My father in law has a CD in trust for my husband. Both have recently passed away. Is my son able to claim it? He is my husband s only child. Thanks
Anonymous
Anonymous   |     |   Comment #154
CD in trust or CD with POD?  If a CD held in the name of the trust, read the trust language as to survivorship, etc.  If CD with POD, who died first?...may be an issue....if the father in law, it should pass to the husband and then held by the bank by/for the husband.  When the husband died, it may be in his estate unless there are beneficiaries.  Reread the terms and conditions of the bank.  May have to talk to an attorney.
Anonymous
Anonymous   |     |   Comment #157
Being on ssi and having been left as person named as pod and tod, whats best way to handle accouns having one sister as well as my dads 7 grandchildren and two greatgrandchildren
paoli1
paoli1   |     |   Comment #158
If you are on SSI I think you will have to give it up depending on how much you were left being named as a POD and TOD.  Resources are very low for SSI benefits.  Maybe your SSI case worker can give you some insight as to what is the best way for you to go now.
Anonymous
Anonymous   |     |   Comment #160
You have to be cautious...if you have funds over a certain amount you may lose SSI! Talk to an attorney before case worker...that person does not necessarily "represent" you!
paoli1
paoli1   |     |   Comment #161
I assumed that the person might not have funds for an attorney if they were on SSI.  Their caseworker could therefore be helpful with some guidance.  If the funds are over the limit for SSI, maybe an attorney could guide the poster how to dispose of them and still keep SSI if that is a possibility. 
Anonymous
Anonymous   |     |   Comment #162
Excellent points!
Anonymous
Anonymous   |     |   Comment #163
As a PS... Some consider having future receipt of funds going to a trust b/c of SSI considerations with the trustee able to distribute $ taking into account a desire to not lose SSI benefits...thus, depending upon the amount, etc talking to a professional may be a real option.
Anonymous
Anonymous   |     |   Comment #165
Sister1 had set up goofy CDs with various children/grandchildren as beneficiaries with varying amounts of money.  While alive, my parents worried about either the bank taking the money, or the beneficiaries getting access to it. We alerted siblings...sister2 just moved the CDs to a different bank.  I was a beneficiary on one.  Parents passed away.  Sister2 (executrix) sends an email, "beneficiaries have been notified".  I was not notified.  Can I find out who the beneficiaries were?
Anonymous
Anonymous   |     |   Comment #166
No,  the banks are not allowed to provide you the beneficiaries of the cd; however, if you provide them with your personal information, they may tell you if you were one of the beneficiaries.
paoli1
paoli1   |     |   Comment #167
What I find odd about this situation is how did Sister2 have the right to move the CDs to a different bank unless she was POA got Sister1 and did it while #1 was still alive?  Even if #2 was a beneficiary, she could not have access to the funds until #1 died.  If I were you, I would just notify the bank that you are beneficiary of the one or ones you are supposed to receive and not be concerned about the others.  This sounds like a mess.
confused
confused (anonymous)   |     |   Comment #170
If owner of cdand one of three beneficiaries dies prior to settlement who gets that beneficiaries part?
confused
confused (anonymous)   |     |   Comment #171
If CD owner dies and one of the three beneficiaries dies before settlement, who gets the deceased beneficiary's part?
Anonymous
Anonymous   |     |   Comment #172
Normally only those living are beneficiaries at the time of death of account holder unless the agreement with the bank says otherwise, e.g. the children/issue of any deceased beneficiary share in proportion otherwise owned by any deceased beneficiary.  If not, the two bennies usually receive the funds.
Mysie Brown
Mysie Brown   |     |   Comment #173
Hoping you are able to help me. My father passed in 2009. I was POD on his SouthTrust (now Wells Fargo) checking and savings acct. I didn't have an issue receiving those funds, but the bank had called him a few months before is death and convinced him to move a large amount ($60K) into a money market acct. When trying to retrieve this amount, I was told he had not named a beneficiary. He did not have a will and I am his only child. I do have a notarized letter from him from 1994 saying where he gave me power of attorney over his assets, but I am told that was only valid while he was alive. I see where I could submit a Summary Administration (Florida). I noticed you had issue with Wells Fargo in the past and would like to know if there is anything else I would need to do or if WF has a way of preventing me from getting the funds.     
Anonymous
Anonymous   |     |   Comment #174
Talk to elder assist office or elder abuse office. The funds may have been transferred to state by WF
Matt
Matt (anonymous)   |     |   Comment #175
My mother recently passed and has a checking account in her name with a POD designation to my brother OR me. Suntrust has stated they cannot locate the POD agreement and even though their records show the POD designation on the account and on all statements they have sent they are requiring their legal department to review. They mentioned they may have to change the name on the account to they Estate of my mother. This will cause the account to be included as part of her estate and be subject to Probate and additional legal expenses.
Does anyone have any experience with a similar situation? Thanks!
Anonymous
Anonymous   |     |   Comment #176
POD agreement?  Never heard of that unless it is the sign card.  Ask to see the signature card that set up the account.  In any event merely b/c the bank lost the "agreement," the statements, etc. are correct...otherwise why did they set/label them as such "in the absence of an agreement!"  Sounds like the bank has bigger problems.  Agree to indemnify them and demand payment asap as the statements stipulate.  You may have to see an attorney for their negligence if they fail to act accordingly.
Anonymous
Anonymous   |     |   Comment #179
my brother was a cosignor on an account at the bank... as soon as my mother was considered incapacitated. he used this ace in the hole. to take my mother down to the bank and sign papers making him single account with POD..... so this means in essence that regardless of her will to have everything divided equally... my mother just signed her entire savings of whatever may be left to my brother as SOLE HEIR.
Anonymous
Anonymous   |     |   Comment #180
Not necessarily recommended...if she was legally "considered incapacitated," she doesn't have capacity to contract, i.e. "make a gift to another" or even to sign a power of atty.  Presumably the bank thought she still had capacity if it removed her from account with only brother on the account.  Also, if one is a joint owner, why any need to change anything?

Sorry for my confusion but hope it works out well for everyone.
Velma Peavy Fowler
Velma Peavy Fowler   |     |   Comment #181
Is a CD with one spouse and i guess a joint accountm with one child, does that child become the beneficiary, or the surving spouse.
Anonymous
Anonymous   |     |   Comment #182
How do you find a CD that may have been left by a grandparent but have no clue except city and state no info on which bank or anything
Anonymous
Anonymous   |     |   Comment #183
Money on deposit that is unclaimed is sent to the state, e.g. the Secretary of State.  Prior to that any interest payment is normally mailed to last address of record along with year end tax info (if over $10 for the year)
Anonymous
Anonymous   |     |   Comment #188
is there a form for the beneficiary to fill out after the death? I cant find one anywhere(Bank of the West).
Anonymous
Anonymous   |     |   Comment #189
Providing the death cert to the bank will trigger the rights of others in/to the account, e.g. joint owner becomes sole owner or, if none, to the beneficiaries.  The bank will then normally provide a new "sig card" for the (new) account owners that show proper ids.
Anonymous
Anonymous   |     |   Comment #190
My grandmother passed away a little over 6 years ago. She told me that her and my grandfather put a CD in my name and one for my cousin when we were born. My uncle had the will redone after my grandmother passed taking me out of the will. My grandfather was in his 80's when they did this. My uncle and dad disown me because my children are mixed and they are Mexican. How can I find out?? My grandmother told me a week before she passed that when her and my grandfather pass I will never have to worry about anything financially and she told me about the CD. I dont even know if my grandfather is alive still or not because I am not allowed to contact him. Please guide me in the right direction.
paoli2
paoli2   |     |   Comment #191
From everything I have been advised, the beneficiary on the CD takes precedent over what is in the Will. As long as your grandmother did not change you and your cousin as the POD (beneficiary) on the CD, it should still rightfully belong to you and your cousin.  Your problem will be in knowing which bank the CDs are with and if you happen to have a copy of the CD.  I do hope she gave you this information so you will know which bank to go to to collect the money.  You will need a copy of the death certificate and your ID so the bank can make sure you are the one named on the CD as beneficiary.  The same would go for your cousin. 

 If you don't have a copy of the CD you are beneficiary of, you might consider calling all the banks your grandmother did business with that you know of and basically tell them she is deceased and you would them to check her CDs to see if you and your cousin are listed as beneficiares as you were told.  There is a chance they would do that for you if your grandmother was a valuable customer. 
Your problem may be that you waited 6 years to inquire.  They may have turned the money over to the State by now if no one claimed the CDs.  Best of luck.
Anonymous
Anonymous   |     |   Comment #192
Mom died last Sept (2014).  I was listed as P.O.D. on her Wells Fargo CD account that my uncle set up for her from their mom's estate (my grandmother).  He did this because my mom was incapacitated with a devastating stroke, from which she never fully recovered.  Upon her death I obtained an official death certificate from my late mom's husband.  I took it in to Wells Fargo with my paperwork and they acted really funny and finally said there was another name added on the account recently.  Until that person died I could not access the funds.  That person was her husband who somehow got his name added.  I know for a fact she wouldn't have, nor physically could have signed anything for her last 6 months.  He also made her sign a prenupt protecting his assets for his kids.  Then he sneakily went after her kids' inheritance.  I have a lawyer but he just keeps waiting to try to make a deal with his lawyer.  They consider the matter closed.  I want him to be held accountable for forgery and financial elder abuse.  How should I proceed?  Go to the police or Wells fargo?
Anonymous
Anonymous   |     |   Comment #193
How many people really know that they can name more than one beneficiary on a CD?
  
One of my sisters is the executor of my fathers estate and she was also named as the beneficiary on his CD.  My father was an absolute stickler for keeping everything equal between all of his children, so I find it terribly difficult to believe that he meant for all of this money to go to just one of us.  Could he just have not been informed at the bank that he could have more than one person named as beneficiary and trusted her to do what was fair to all of us?  I had a couple of CDs in the past and never knew I could name more than one person.  By the way, this was a small local bank with just a handful of branches.
Anonymous
Anonymous   |     |   Comment #194
my grandma had 1,000 dollars in the bank for me my dad was power of it and I just found out that my dad closed the cd in 2012 how is that possible can he do that when it was my grandma that gave that to me when she passed away.
paoli2
paoli2   |     |   Comment #195
Are you sure your dad was POA (Power of Attorney) for the CD and your grandma or was he the POD (Payable On Death).  If she gave him POA over her he was able to handle her banking and could have closed the CD.  If she had you listed as beneficiary or POD, I don't know if he could bypass her wishes and close the CD.  Is there any way you can find out if she actually had you listed on the CD as either beneficiary or POD?  That would be the first thing I would do to find out how your father had power to close the CD.  People really need to know how to leave money to those they love in the proper way to make sure they get it.
Anonymous
Anonymous   |     |   Comment #196
My mother had passed 2 years ago. I had finally found the pod the papers that sterling bank when switched to comamerica had said "they couldn't find ". Papers that list me as sole beneficiary. I am her only child. I even had the death certificate. Everything is there. But now the bank is asking for a letter of testimonial . Why should I need this for an IRA? . The Pod clearly states that i am It? I'm in Texas.
paoli2
paoli2   |     |   Comment #197
I have called every bank and/or credit union where I have PODs and asked exactly what was needed so that the beneficiary could collect the funds or claim the account.  I was never told they would need any letter of testimonial.  They need the death certificate and an ID from the beneficiary to show they are the correct person listed on the account.  I would ask that bank "why" they need basically a reference letter for you.  You either are or aren't the person named as beneficiary.  If you have a copy of the POD papers listing you as beneficiary and a death certificate, and your ID, that should be all you need.  I don't think the state of Texas has anything to do with why they are asking for a "Reference" letter on you unless you are trying to get a "job" there.  I would ask to speak to the bank manager.
Anonymous
Anonymous   |     |   Comment #198
Letter of testimonial is a little confusing...testimonial relates to a will and, of course, if it is a POD account, the will does not matter.  The Letter part could merely mean with testimonial a will.  I agree with the paoli2 suggestion above.
Anonymous
Anonymous   |     |   Comment #203
Why do most banks deny they have a list of Certificates of Deposit.   The public would like to know which bank cooperates and how did they get access to the publics money they deny they are getting salaries from?
paoli2
paoli2   |     |   Comment #204
Why would any bank have a "list of Certificates of Deposits?"  They sell them to customers and the CDs are then listed under that person's name on their account.  I never heard of a CD "list" such as you seem to be posting about.
Anonymous
Anonymous   |     |   Comment #205
Question? My father has a CD payable to second his wife upon his death. She passed away first. He is still living and the sole owner of that CD. Is it a state law in Georgia that the CD upon her death is  to transfer to her children. It is not on the CD for them to be secondary beneficiaries. Is there any truth to such a claim?
Anonymous
Anonymous   |     |   Comment #206
Normally the beneficiary rights die with the beneficiary, i.e. the "father" now has a CD without an effective bennie and, thus, w/o updating, goes to his estate... talk to the bank but he needs to update the Bank sigcard asap
paoli2
paoli2   |     |   Comment #207
The great thing about being able to leave a beneficiary on a CD is that it avoids probate.  If your father wants you to become the new beneficiary, he really needs to contact the bank and have the correct name put on the CD.  If he doesn't, it goes into probate and is given to whomever the courts decide are inline to inherit it.  You are fortunate that he is still alive and can take care of this.
Anonymous
Anonymous   |     |   Comment #208
I was joint POA, but my mother, to make sure I received all bank assets told all 3 banks that she wanted my name on the assets so that I would inherit the money when she died. These assets did not go through the Will, (in case my brother contested the Will, to avoid probate, and to make sure I got the money right away) when my brother found out he was only getting a few thousand, and the doctor said she might have only weeks to live, he began removing money and closing out bank accounts, while she was still in hospital (none of the banks contacted me, nor did the lawyer) he even presented a new POA, filled out by his daughter that removed me as POA, (using Motel employees as witnesses), and the same day cleaned out the remainder of the accounts. Although insured, the assets were not insured against theft or fraud so the banks don't have to pay you back, and one manager informed me that as POA my brother could do anything he wanted with the money.

I thought because he informed them that she was dying, and that a new POA was made just a few hours earlier, the banks would have tried to stop him, or at least contact me, since this money was about to become mine, instead one bank contacted their lawyer who said to give him the money, even though it meant breaking the right of survivorship. I went to my mother's lawyer, but my brother managed to convince him, that I was trying to cheat him out of a few thousand while I had been cheated out of a quarter million dollar estate. The lawyer later lied, and claimed he had never met me, and had no idea my brother was lying to him, yet he himself stated that when Wills are unevenly divided these things happen, so why then was he not suspicious in the first place? My mother's lawyer told her since she didn't have any money other than her pension to leave it with the police, and instead of saving what little she could for me, another lawyer took all her pension money, trying to find out what my brother did with the money, when he couldn't, he finally he said he made a deal to get most of the money back, she just had to wait a few months, she died a few months after the deadline, realizing she had wasted her money on the lawyer, she never saw a dime, and since I have no money I can't hire a lawyer and I am not entitled to legal aid. People say don't worry God will get him, while at the same time telling me, now that my mother is dead the police will drop the matter and I will never get justice, because I have no money to pay a lawyer. 

So just a heads, just because you tell a bank that someone is to have right of survivorship, doesn't means the banks have to honor it. The new lawyer said, that my mother had a case against the banks, but it would take years, and of course with no money, and a soon to be dead client, lawyers aren't interested in going after banks.

My brother deposited the bulk of the money in an account with both his name and my mother's name, then immediately transferred the money to an account with just his name. Two banks said the bank drafts could only be made payable to her, while he convinced a third to make everything payable to him directly even though his name was not on any of the bank assets. After the bills are paid I live on just over $500 a month, while my brother claims to have no money yet his girlfriend's family thinks he's a millionaire, go figure. 
Anonymous
Anonymous   |     |   Comment #209
My uncle has passed and I was named POD on his checking account.  He had dementa and my sister inquired and got guardianship.  She said that the courts told her to place his moned into different accounts to keep it from loosing out due to FSLIC. When she moved accounts she did not put me back as POD.  Can she do that legally?  My mother will now receive all due to no will.  She also, try to tell me he took me off can that be legal since I had been POD for years and the dementia he had he was not of sound mind..
Anonymous
Anonymous   |     |   Comment #210
There is guardianship for the person and guardianship for the finances...which may be one in the same.  The court presumably had an opportunity to interview the uncle with the result being appointment of a guardian...who acts on behalf of the individual.  Earlier wishes/desires (unless arguably in a contract) are trumped by same.

For # 208 and 209

 Mediation, if all parties agree, could help...you do talk to your mother?  And, remember, mom was the sister of the uncle.

The Amer Bar Assoc. has an elder law blog.  There also may be a pro bono elder law atty in your area...in any event it could be an uphill road without everyone coming together.  One biggie is, do your think the original judge would, in effect, admit s/he was wrong in the process?

Good Luck
Anonymous
Anonymous   |     |   Comment #211
Yes, I do speak to my mother until my uncle passed.  My mother and him did not speak the day their mother passed.  They had no relationship for the past 35 years.  My uncle reached out to meet then and we were very close. My husband and children were in family. His friends did not know he had a sister.  My sister and my mother came into his life the last three years when he was full blown dementia.
They did not know him until I told them that I was getting gaurdianship and they went behind my back and did an emergency one.  Due to the fact he was in a hospital and had an emergency hearing.
I have copies of his bank statements that had me listed pod before he was ever sick. I am speaking from years back and until recent.  Will this help in court?
Also, that why my mother and him stop speaking was because of money.  Now she following suit with me.  This is a very sad situation but I know for a fact he would not had wanted her to have it and she knows it.
Anonymous
Anonymous   |     |   Comment #213
Can't provide anything more than that above
Anonymous
Anonymous   |     |   Comment #212
i need to locate a beneficiary account that was left to me
Anonymous
Anonymous   |     |   Comment #214
How do you know you are a beneficiary unless you also know where and to what?
paoli2
paoli2   |     |   Comment #219
May I make a suggestion that when comments are removed, the poster gets some type of a notice as to which of the 10 rules they broke so they won't commit the same offenses and end up getting banned from DA?  The 10 Comment Policies could be numbered and just putting which number the policy offense was could be very helpful, imo.  Does #215 and #216 have any idea "why" their post was really removed??  Just an idea.
Anonymous
Anonymous   |     |   Comment #222
I think it is ytyt who removes the comments. 
paoli2
paoli2   |     |   Comment #223
#222:  What does your secret code "ytyt" mean?  Some of us are not up to date with net speech.  Thanks.    Btw, I always thought only the famous "deleters" who Ken uses can delete our posts.  Posters can't delete arbitrarily  from what I know.
Anonymous
Anonymous   |     |   Comment #226
pod accounts paid my husband but he died and his mother died that gave the pod to him at her death who gets it! He also has a sister who is now excutrix of the will will I as his wife or his two children receive any of the C D
Anonymous
Anonymous   |     |   Comment #227
Normally beneficiaries have to be alive at the time of the death of the account holder/owner...the reason why alternates are sometimes used.  Ask the sister to see the account agreement as to whether or not beneficiaries have to be alive.  If not, goes to "husband" and then, since he passed away, to his estate for distribution.   Good Luck!
Anonymous
Anonymous   |     |   Comment #234
My Husband has a CD that was in his name and his recently deceased Fathers name . However when he went to take the CD out -He learned that a Trustee (not a beneficiary took his CD). I think this is illegal. Does anyone have input
Anonymous
Anonymous   |     |   Comment #235
If joint with right of survivorship then either party can do anything with account until death.  A trust usually cannot be on joint account (trust is not an individual) but check with the bank and look at the agreement.  You do not state if the trustee "took" the funds before or after death of Father.  Perhaps a POA was used before death????   POAs do not survive death.  If "a lot" of money, you may want to talk to an attorney and/or talk to FDIC AFTER getting all your facts and escalating within the bank.
Anonymous
Anonymous   |     |   Comment #229
Has anyone ever heard of a federal law that states you can withdrawal from a CD penalty free for up to 12 months after the death it's owner or co-owner?
alofton
alofton (anonymous)   |     |   Comment #230
Good evening! I was hoping I could get some advice given your coverage of banking. Do you know who becomes the beneficiary of a CD in which the pod passed away before the account holder? My grandmother was a long time partner of an individual that just passed away. She passed a year before he did, but I don't think he ever updated the pod. Since they are not married, we are worried that it will go to probate. My question is whether or not my grandmothers heirs would become the beneficiary? They were together 28 years and just did not get married. We were a family, just not in the eyes of the court. Your feedback would be greatly appreciated. Thanks!
Anonymous
Anonymous   |     |   Comment #231
May be tough...read the previous posts whereby, generally, the beneficiary must be alive at the time of death of the primary account holder.  Then, you mention "partner," perhaps like a partnership and seeing an atty if significant funds are involved to check the language of the account (does the beneficiary have to survive?) and whether being a partner gives some leverage if in probate.  Good Luck
Anonymous
Anonymous   |     |   Comment #236
My question is I worked as a caregiver for a individual for almost six years , His daughter and son rarely called him or visited him , He told me they had a falling out and he didn't care for them. Anyway he decided to make a new revocable living trust and he left everything to me . He even went to bank and changed his accounts payable to me on death . now he has passed and his family put a block on the accounts . can they do that after he left the money to me ???
Anonymous
Anonymous   |     |   Comment #237
Cont from above ^^^^^^
oh also he left his house to me , but immediately  the son changed all the locks . Do I have the right to have a locksmith change the locks ???
paoli2
paoli2   |     |   Comment #238
Your questions are best answered by a lawyer but if the son changed all the locks, it seems to me they have a Will stating he left his estate to his children "before" you became his caregiver.  This would seem to be a case where they have to show some proof the individual was not in his right mine when you were caring for him and he left everything to you.  The fact that he needed a caregiver shows he was not able to care for himself so whether you are able to take any of the money will depend upon the courts now since it seems his children are not going to just agree with their father's change in plans after he became ill.  You now have to decide if you want to fight them for the assets and if you do, you really should be speaking with a lawyer, imo. 
Anonymous
Anonymous   |     |   Comment #239
he told me he had no will just a previous revocable living trust which he decided to change and re-did his living trust to me including power of attorney . But I will consult an attorney and see if it is worth me challenging his children for everything his money and house.
Anonymous
Anonymous   |     |   Comment #240
Usually if there is a trust there is no need for a will.  Good Luck!
Anonymous
Anonymous   |     |   Comment #242
I have learned that you do not trust anyone.  My children's CD's were put in a lockbox of my sister-in-laws and my mother-in-law died.  Now my sister-in-law will not release the CD's of my two children's as well as grandchildren's.  My husband and her are executor's of the estate and she is wanting to run the show..it is so sad that we now have to get an attorney to get these released to our children. 
SJones
SJones (anonymous)   |     |   Comment #243
I have a question. My cousin recently passed and left her "Almost CD" to my mother and aunt. That's the only name or description attached to the CD. The lawyer and executor says that she can't find the CD or it was renamed so all of it went to the residual of the estate. Is there a way to trace the CD? Does it seem strange that the first 2 beneficiaries listed won't receive anything because the lawyer can't find the CD? Should we contact the beneficiaries of the residual?
Anonymous
Anonymous   |     |   Comment #244
Look at the old mail for statements, etc.
Anonymous
Anonymous   |     |   Comment #245
It's 6-3-16 and I just found your blog.  Still extremely relevant.  Thank you so much, Ken (Ken was my dad's name).
#247 - This comment has been removed for violating our comment policy.
Anonymous
Anonymous   |     |   Comment #248
Recently, my mother put my name on her jumbo cd account and listed my siblings as beneficiaries.  If mom dies before I do, I intend to equally divide the value between myself and siblings.  Because my name in on the account, will I have to pay all sorts of taxes?  Would I be better off to take my name off the account and just be one of the  beneficiaries?
Anonymous
Anonymous   |     |   Comment #249
There is a $5M exclusion for estate/gift taxes at the federal level...state may have inheritance tax.  "Dividing the value" should be in the account documentation, i.e. the benefit goes directly to them, not you and then them...if I'm reading your "facts" correctly.  Current taxes in interest would be reported on a 1099 to the account holder...Mom?