WHAT DOES "POD" STAND FOR?
There are a number of different acronyms that you see thrown around when you are looking into the subject of estate planning. One of these is "POD" and we would like to take a brief look at what this means in an estate planning context.
A POD account is a "payable on death" account, and the creation of this type of account involves naming a beneficiary who would assume ownership of the resources that remain in the account after you pass away. They are sometimes called "transfer on death accounts," and in addition to being offered by banks and other types of financial institutions they are also available at some brokerages.
Because these accounts are simple, straightforward, and allow for a direct transfer of assets outside of probate they hold some surface appeal. However, POD accounts are not by any means a comprehensive estate planning solution because they are limited in scope.
These limitations would include the inability to give different percentages to multiple respective beneficiaries. Another thing to consider is the fact that there are no provisions for the possible incapacity of the primary account holder. In addition, there are no particular tax advantages to be had, and assets are not protected from creditors and claimants.
The best way to proceed with regard to arranging for the eventual transfer of assets to your loved ones is to make intelligent and informed choices with the benefit of expert guidance. To get started, the first step is to reach out and arrange for an informative consultation with a licensed and experienced San Bernardino estate planning attorney.