We try to have everything lined up in our lives “just in case” – a legal will, life insurance, prepaid funeral expenses… but what about your credit union accounts? You can ensure even your checking and savings accounts are in good hands with a payable-on-death (POD) designation.
When the owner of a bank account passes and there is not a POD designation listed, it is very troublesome for the surviving family to close accounts and access funds. There may also be high legal fees incurred. Setting a POD designation is an easy way to keep your funds out of probate and simplify things for your loved ones who will manage your accounts when you’re gone.
Setting up a POD designation
To set up a POD designation, simply visit your local branch - and come prepared with the person’s name and basic information in hand.
How does a POD designation affect my account(s)?
When the account owner passes, the funds are first paid in full to any joint owner on the account. However, if there is no other surviving owner on the account, the funds are granted to the POD(s).
As long as the account owner is alive, the person(s) named as the POD on an account cannot access the account. When the time comes, the designated POD(s) can contact us and provide a death certificate. After verifying the individual’s identity, the funds are paid in full to the POD. If there are multiple POD designations, the funds are divided evenly.
To learn more, contact us at 972.348.2000.
As featured in Currents / eCurrents Winter 2014 edition