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What if you were told the person you listed as your next-of-kin would likely not inherit the funds in your bank account when you kicked the bucket? Would you believe?
Well, it is what it is, but there’s a way out of such uncertainties. That’s the utilization of the POD bank account form.
In this article, we will take a look at what a POD bank form is, why you need it, and how to get one for your account.
What is POD Bank form?
Payable on Death (POD) bank form is an arrangement between a bank or credit union and a client that designates beneficiaries to receive all the client’s assets upon their passing.
This legal agreement tells your bank who they should hand your money over to after you pass away, ensuring your intentions are documented.
Why You Need a POD Bank Account Form
The following are some reasons why you should get a POD bank form for your account:
1. To Keep Your Money Out of Probate:
POD bank accounts offer an easy way to keep money even large sums of it out of probate.
Probate can be a lengthy and expensive process, and using a POD account can help your beneficiaries avoid this hassle.
2. For a Simplified Estate Planning:
A POD account is a straightforward way to plan for the distribution of your assets.
It requires minimal documentation and legal intervention, making it a popular choice for those looking for a simple estate planning solution.
3. Control Over Your Assets:
With a POD account, you retain full control over your assets during your lifetime.
You can change beneficiaries, withdraw money, or close the account at any time without any restrictions.
How to Get a POD Bank Form
1. Contact Your Bank or Credit Union:
Reach out to your bank or credit union and inquire about their POD account options.
Most financial institutions offer this service, and they can provide you with the necessary forms and guidance.
2. Choose Your Beneficiaries:
Select the individuals, groups, non-profits, companies, organizations, or trusts that you want to designate as beneficiaries for your account.
Make sure you have their full legal names and other necessary information.
3. Submit the Form:
Fill out the POD bank form with the required details, sign it, and submit it to your bank or credit union.
They will process the form and add the designated beneficiaries to your account.
How to Withdraw Funds from a POD Account
As a beneficiary, you can only withdraw money from a POD bank account when the owner of the account has passed away.
In the case where he or she is sick and unable to access the funds, you may be required to take some legal steps before you can access them.
But when the owner of the account is dead, you’ll need to provide the death certificate. And that’s it.
A POD bank form is a simple and effective way to ensure that your assets are distributed according to your wishes upon your passing.
It helps keep your money out of probate and provides a straightforward estate planning solution. But in the case where you don’t feel like it, ensure you have a Will in place.
Did you find this information helpful? Let us know what you think in the comments section.