• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Who We Are
    • About Our Firm
    • Meet Our Team
    • News and Events
    • Seniors Rock Radio
  • Estate Planning
    • Elder Law & Medicaid Planning
    • Estate Planning Services
    • Estate and Gift Tax Figures
    • Family Farm Succession Planning
    • Family-Owned Businesses & Farms
    • IRA Planning
      • Planning With An IRA
      • IRA & Retirement Planning
    • Legacy Planning Services
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Elder Law Resources
      • Elder Law Reports
    • Guardianship & Conservatorship
    • Hospice Care
    • Veteran’s Benefits
  • Resources
    • Definitions
    • FREE Estate Planning Worksheet
    • FREE Webinars
    • Estate Administration Legal Guide
    • Estate Planning Articles
      • Questions for Your Estate Planning Attorney Before Creating Your First Estate Plan
      • How to Create Your First Estate Plan in 2022
      • How to Choose a Guardian for Your Child
      • Address These Three Questions in Your First Estate Plan
    • Estate and Gift Tax Figures
    • Frequently Asked Questions
      • Adult Guardianship
      • Alzheimer’s Care
      • Custodial Accounts for Minors
      • Estate Planning
      • FAQs for Families Without an Estate Plan
      • Elder Law
      • IRA & Retirement Planning
      • Is Your Estate Plan Outdated?
      • Legacy Planning
      • LGBTQ Estate Planning
      • Medicare and Social Security
      • Probate
      • Probate Avoidance
      • Irrevocable Trusts
      • Trust Administration
      • Trusts
      • Veterans’ Benefits
      • Wills
    • Newsletters
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
    • Top Estate Planning Techniques
  • Reviews
    • Our Reviews
    • Review Us
  • Medicaid Planning
    • Medicaid Planning
    • Emergency Medicaid & Nursing Home Planning
    • Medicaid Frequently Asked Questions
    • Medicaid Resources
  • Blog
  • Contact Us

Law Office of Michael Robinson, P.C.

Estate Planning Services in Rochester, New York and the Finger Lakes Area

Connect With Us Today

(585) 374-5210
Law Pay Button
Attend a Free Webinar
Home » Estate Planning » What Is a Payable on Death Account?

What Is a Payable on Death Account?

September 16, 2014Estate Planning

There are many different ways to facilitate future asset transfers, and some of them are more effective than others. Before you make any decisions, you would do well to discuss your options with a licensed estate planning attorney.

People sometimes make assumptions without enough information, and they accept incomplete solutions. With this in mind, let’s look at payable on death accounts.

POD or TOD Accounts

Payable on death accounts are alternately referred to as transfer on death accounts. You can open these accounts at banks and many brokerages. When you open a payable on death account, you name a beneficiary. After you pass away, the beneficiary inherits the assets that remain in the payable on death account.

The process of probate is a factor if you leave someone an inheritance in your last will. The will must be admitted to probate, and the heir would not receive his or her inheritance until after the process has run its course. With a payable on death account, the transfer of ownership would take place outside of probate.

When you first hear about payable on death accounts you may be enamored, but there are some potential drawbacks to take into consideration.

Incomplete Solution

A payable on death account is not a complete estate planning solution. It is unlikely that all of your objectives can be accomplished through the utilization of a POD account.

Firstly, you may want to leave different sums of money to multiple different heirs. You may be able to add multiple beneficiaries depending on the rules of the institution in question. However, the institution may require you to allow for equal distributions of assets that remain in the account. In other words, you can’t have it your way.

There is also the matter of incapacity. A significant percentage of senior citizens become incapacitated and unable to handle their own affairs late in their lives. The beneficiary cannot assume ownership of the funds until after you pass away. There is no way to account for the possibility of incapacity when you create a payable on death account.

There are no tax advantages to be gained when you use one of these accounts, and payable on death accounts do not provide asset protection.

There is also the matter of the death of a beneficiary. If one beneficiary dies, who gets that share? The other beneficiaries may want to split it, but the descendents of the deceased beneficiary may have other ideas.

Better Solutions

As you can see, payable on death accounts are appealing on the surface, but they are limited in scope. There is no reason to accept limitations when you are planning your estate. More comprehensive solutions exist.

Free Estate Planning Consultation

You should understand all of your options when you are planning your estate. If you would like to discuss your unique situation with a licensed attorney, contact our firm to request a free consultation.

  • Author
  • Recent Posts
Michael Robinson, Estate Planning Attorney
Michael Robinson, Estate Planning Attorney
Clients notice Michael Robinson’s unique approach to his estate planning practice the minute they walk through his office doors.
Michael Robinson, Estate Planning Attorney
Latest posts by Michael Robinson, Estate Planning Attorney (see all)
  • Business Succession Planning May Be Easier than You Think - June 1, 2022
  • Estate Planning – Something You Shouldn’t Do Yourself - May 18, 2022
  • Just When You Thought You Understood the 10-Year Rule, Think Again - May 11, 2022

Other Articles You May Find Useful

Business Succession Planning May Be Easier than You Think
Just When You Thought You Understood the 10-Year Rule, Think Again
Let’s Talk about Trusts…and Taxation
What Estate of Marion Levine Means for Life Insurance
Application of the Transfer for Value Rule to the Sale of Life Insurance
estate plan
Estate Planning Basics for Young Parents

Primary Sidebar

Law Office of Michael Robinson, P.C.

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube

TESTIMONIALS

A pleasure as always dealing with the entire staff. Always willing to explain the answers to our questions.

- Joseph and Julie Ann M.

Over the years we have been to many programs regarding Estate Planning. We were most impressed with Mr. Robinson’s presentation - both in subject matter and explanation in an understandable manner. We have put our “trust” in his competent hands. We were not aware of the complexity and the volume of paperwork generated for this undertaking. We found his staff to be most capable and client oriented in their knowledge and delivery.

- F.T. & L.T.

Our overall experience was one of thoughtfulness, clarity and comprehensiveness on the part of Michael Robinson, his staff and associates. We attended Michael’s seminar on legacy wealth, and found him to be clear and well-spoken. He touched on all aspects of Estate Planning in which we were interested. Our first of two visits to his office was timely and helpful enough for us to consider developing a plan. We finalized our document at a necessary meeting. His staff was accommodating and virtually spelled out every aspect of the plan. We highly recommended Michael and his system for developing a trust.

- Sharon T.

“From the first visit I was welcomed (like family). The office & girls have all their ducks in order! Very friendly! Mr. Robinson explained everything in detail. 100% satisfied. Will pass the word on. Great Law Firm. Thank you so much.”

- Geraldine P.

Establishing a Family Wealth Trust through the Law Office has been a positive experience, the staff is congenial, patient, thorough, professional and knowledgeable. Thank you for all your kindness. We certainly are comfortable and confident with our decision.

Beverly L.

<
>

News & Events

Seniors Rock Radio Show Recording 5-1-21

https://drive.google.com/file/d/1U7UkQbEGy-xY7XFAXvX9Qz7pKSVDVV3D/view?usp=drive_web   Author Recent Posts Michael Robinson, Estate Planning AttorneyClients notice Michael Robinson’s unique approach to his estate planning practice the minute they walk through his office doors. Latest posts by Michael Robinson, Estate Planning Attorney (see all) Business Succession Planning May Be Easier than You Think - June 1,... Read more →

Pittsford Office

1163 Pittsford-Victor Road, Suite 120 (Powder Mill Office Park)
Pittsford, NY 14534-3817
Phone: (585) 374-5210
Fax: (585) 485-0394

See Larger Map Get Directions

Map

mrobinson_sidbr_map

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
robinson law logo

The Law Office of Michael Robinson, P.C.

Attorney Advertisement


© 2022 American Academy of Estate Planning Attorneys, Inc.