Is Payable on Death Account the Right Choice For You?
When choosing the right future, you would always want to get the best one not just for yourself but also for your loved ones. This is especially true when you are making a decision regarding money and the selections that you pick to safeguard the future of your family and beneficiary.
Just like an Amsterdam holiday or an Amsterdam city trip, you prefer to make everything to be perfect. One way in order to secure your assets for your beneficiary is through payable on death account. But is this the right choice for you? Are you making the right decision?
What is payable on death account?
The payable on death account is a kind of account that you can choose to safely transfer your money and other assets in a bank or credit institution from your name to your beneficiary’s name. This is the problem that many people have to face when their loved ones pass away. They have to rely on probate courts to settle the account and make the necessary distribution of assets to the beneficiaries of the account holder.
The assets on a payable on death account are only accessible to the beneficiary once the account holder passes away. But if you are still alive, you have all the control over the money inside the bank account.
What are the conditions surrounding the POD account?
First, you have to set the name of the beneficiary at the start of the account. But the issue with payable on death accounts is that you cannot change the name of the beneficiary in the middle of the duration of the account. So what will you do if, in case, the beneficiary passes away before the account holder? You cannot do anything about the account. It is probably best to create a new account for another beneficiary.
What happens if you are mentally incapacitated?
Since the account is only payable on death, family members will still not have any access to that account because you are still alive. They can opt to go to court to have some guardianship over the account.