Noticed while researching Ally Bank POD account that a 'Letter of Instruction', then when clicking on hyperlink this meant a 'non-legally binding letter' from the owner is required to set up this POD account, among a few other requirements. Question is: What exactly is a 'non-legally binding letter', and why is it necessary? Seems just another layer of legal mumbo-jumbo to me; since you must designate an individual 'BY NAME' in the POD. What the heck over! Or am I just being 'unreasonable!' :-) Also, do all POD accounts at other banks and credit unions 'require' a non-legally binding letter of intent?
Answers
If they do not use a form, then this letter substitutes, I suppose. However, when you write it, state that it is not legally binding for them to do the set up but that once it is set up, that is legally binding. You don't want them having the ability to ignore it as a POD when the time comes.