POD - Payable on Death

[AZ-Tax]

It my understanding upon passing, who ever was named as the POD/beneficary, the acct either transfers in that POD's name or the acct is paid out entirely to the POD, correct?

For some reason upon the passing of my client in 08, the banks did follow thru with the POD and the accts remained in the named of the deceased throughout the rest of 2008 and 2009 therefore the 2008 & 2009 1099-int's is in the deceased's name. I was told this is an issue with the Bank and the Bank needs to correct those 08 & 09 1099-int's to read in the POD name only. Is this correct?

[Peachie]

I did a POD for me

It my understanding upon passing, who ever was named as the POD/beneficary, the acct either transfers in that POD's name or the acct is paid out entirely to the POD, correct?

For some reason upon the passing of my client in 08, the banks did follow thru with the POD and the accts remained in the named of the deceased throughout the rest of 2008 and 2009 therefore the 2008 & 2009 1099-int's is in the deceased's name. I was told this is an issue with the Bank and the Bank needs to correct those 08 & 09 1099-int's to read in the POD name only. Is this correct?

this year. It's my understanding that my beneficiary will have access to my account (s). I am not sure how the 1099s will be shown thhough because I didn't ask. Probably because I will be in lala land. I am not trying to be funny AZ, it just came out that way.

I would think the entirety of the accounts will be given to the bene's since they have access to them anyway and will be "titled" in their names.

[JohnH]

The bank doesn't know to transfer ownership to the POD beneficiary unless someone tells them (either the beneficiary or the executor). Now if the bank was notified and they didn't follow through, then that's a horse of another color.

BTW, you are talking about a regular account, not an IRA - correct? Things are slightly different with an inherited IRA, although the beneficiary's name & SSAN should still replace the deceased's. (Can "deceased" really be written as a possessive?)

[ChEAr$]

(Can "deceased" really be written as a possessive?)

ONLY if he can take it with him. (grin)

I've recently set my accounts up the same way with wife being named POD, i.e.
beneficiary. I'm not worried, and reconciled to the fact she'll cash em in immediately anyway. The one "burial" CD I set up,explaining to her what to do, how, etc, and
that it for her use "IF I die." She looked kinda funny when I said that.

[JohnH]

A recent experience in this regard. POD beneficiary is fine, but the person still living must have a death certificate to get to the money. (at least that's how it is in NC). This usually isn't a problem since death certificates are issued fairly quickly. But if there's a delay in getting the death certificiate, the money is tied up. Delays can and do happen occasionally for a variety of reasons.

It's a good idea to also have at least one account set up as Joint Tenants with Right of Suvivorship (JTWROS). In this case, the remaining person can access the money in that account immediately for emergencies or access to transitional funds. It's a nice safety net. I just saw a situation of this type play out and it's good that the JTWROS account was available for something that needed to be paid quickly.

[taxea]

JohnH is right both times. How would the bank know the name holder is deceased and they would not change the name on the account without proper documentation (death certificate) anyway. I don't think anyone has a responsibility to notify banks when someone dies. Even the IRS doesn't have all your bank account information unless they are doing an investigation on you.

[Burke]

It my understanding upon passing, who ever was named as the POD/beneficary, the acct either transfers in that POD's name or the acct is paid out entirely to the POD, correct?

For some reason upon the passing of my client in 08, the banks did follow thru with the POD and the accts remained in the named of the deceased throughout the rest of 2008 and 2009 therefore the 2008 & 2009 1099-int's is in the deceased's name. I was told this is an issue with the Bank and the Bank needs to correct those 08 & 09 1099-int's to read in the POD name only. Is this correct?

1. That is correct.
2. You are correct on the second issue as well, but don't hold your breath as they probably will not do it. Just pro-rate yourself. All interest after date of death goes on heir's return(s).

[Burke]

I don't think anyone has a responsibility to notify banks when someone dies.

The heirs and/or executor(s) have that responsibility. All financial institutions should be notified immediately and given the proper documentation that they require as well as the EIN of the estate if there is one, and the accounts are not POD. Or the SSN of the heir(s) if there is no estate or if the accounts pass outside of the estate (POD's).