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An integral part of your estate plan is decided who will receive your assets and why after you pass away. Indeed, there are numerous tools you can use to make certain that the assets you want to provide to your loved ones are correctly distributed. Commonly, people think of wills and trusts as the best options for getting assets into the hands of beneficiaries as soon as possible after passing away, but this overlooks the important role that a payable on death (POD) account plays in estate planning.
A payable on death account allows you to deposit any sum of money into the account and allocated it to be near-immediately transferred to one or more beneficiaries once you have passed away. The bank or financial institution handling your POD account will be instructed to pay the entire deposit plus any added dividends or interest earned after its creation to the beneficiaries as soon as possible after receiving an official copy of your death certificate. This acts as perhaps the fastest ways to get your financial assets into the hands of loved ones who need them, circumventing many of the complexities that can arise with wills and trusts, such as succession and trust administration complications.
Of course, for your payable on death account to be considered valid, it has to be made officially. In Louisiana, you must create the POD account in the presence of an “officer or branch manager” of the financial institution handling the account, as well as at least two others.
Furthermore, the title of your POD account must include specific language:
- “In trust for”;
- “As trustee for”; and/or
- “Payable on death to”
Lastly, the names of the people who are to receive your finances upon your passing must be clearly stated within the account’s documents. Otherwise, the same issue of incorrect distribution of your assets will still be present.
Payable On Death Accounts Attorney in Baton Rouge
Are you thinking a payable on death account would be a great way to ensure your loved ones can live comfortably after you are gone? Discover more about these unique estate planning tools, their benefits, and why some people might not want to use them by calling (225) 228-4445 and connecting with the Law Office of Wendra J. Moran in Baton Rouge, Louisiana. Our entire legal team, led by Attorney Wendra Moran, is here to make certain you are comfortable with your estate plan as it develops. It is our passion to help the people in our community feel satisfied in knowing they and their families are as prepared for the future as anyone can be.
We would like to hear from you. Contact us now to schedule a consultation about payable on death accounts and other estate planning options.