Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. TOD (Transfer on Death) designations, POD (Pay on Death) designations, and beneficiary designations can be useful in the right circumstances. Each of these tools allows for an automatic transfer to the named beneficiary at the death of the owner. But these tools can have a few shortfalls. First, if the named person predeceases the owner, typically it will not be … [Read more...] about Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
Payable on Death Accounts are not a Comprehensive Solution
Payable on death accounts may sound like a simple way to pass assets to your heirs. However, there are numerous reasons why payable on death ("POD") accounts do not provide a comprehensive estate planning solution. When you open up a bank account or brokerage account, you may be offered a payable on death option. With these accounts you add a beneficiary, and this individual would assume ownership of any funds left in the account at the time of your death. If you are presented with this … [Read more...] about Payable on Death Accounts are not a Comprehensive Solution
