This column discusses some of the problems that can come up with payable-on-death (POD) agreements that are being increasingly used by brokerage firms and banks. “These agreements are a form of beneficiary designation that transfers the account directly to your chosen beneficiary avoiding probate and bypassing your will.” These agreements can be good in the right circumstances, but there are risks if they are not carefully thought out. This column provides a real life example of a nephew using a POD in a way that was contrary to the way his aunt intended. Wills and estates are much more complex than they seem on the surface, and it is extremely important for people to be cautious about how they use POD agreements. “The best uses are where the case facts are simple such as you know you want a certain account to go to a certain person.”
See Stewart Welch, The downside of P.O.D.’s, Alabama Media Group, February 11, 2016.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
