Beware the Unintended Consequences

Over the last 2 days, I have discussed TOD, POD, Joint Ownership, Beneficiary Designations.  You want to title your assets to meet your specific needs and not have Unintended Consequences. 

If you retitle your asset into a joint title with rights of survivorship, you give up the right to give that asset to another person under your Will.  Similarly, when you create a POD bank account or a TOD brokerage account, you give up the right to leave the account to another person under your Will.

You want to have your estate plan handled by a professional.  Contact us at www.ythlaw.com
for all your estate planning, estate administration and elder law needs.

POD Accounts and TOD Accounts

Many clients have asked whether Payable On Death (POD) accounts and Transfer On Death (TOD) accounts will have the same effect as a Will.  A bank account titled as a POD account with a seignaed beneficiary and a brokerage account titled as a TOD account with a designated beneficiary will be paid to the designated beneficiary regardless of the terms of the Will.

A POD is a bank account that enables an account owner to designate one or more beneficiaries who will receive the funds of the bank account at the account owner's death.  A TOD account is a securites account that enables an account owner to designate one or more beneficies who will receive the assets of the account at the account owner's death.

Therefore, it is important in estate planning to look at all your holdings and determine whether the arrangement meets with your intent.  We help you make sure that uninteded consequences do not happen to your family.  Contact us at www.ythlaw.com

TENTH Hot Estate Planning Topics

TENTH, given the state of the economy, it is important that banks maintain the confidence of their depositors. The FDIC continues its role in helping to strengthen public confidence in the nation's banking system by simpling rules applicable to revocable trust accounts. Two types of revocable trust accounts are insured under by the FDIC: informal trust accounts and formal trust accounts. Informal trust accounts consist of a signature card on which the owner designates the names of beneficiaries to whom the funds in the account will pass upon the owner's death. These are the most common type of revocable trust accounts and generally are referred to as "payable-on-death" (POD) accounts. The other type of revocable trust accounts are accounts established in connection with formal revocable trust agreements. Formal revocable trust agreements are created for estate planning purposes and are referred to as living or family trusts.

All revocable trust accounts (both POD accounts and living trust accounts) are insured up to $250,000 for the interest of each qualifying beneficiary. Generally, this would be the owner's spouse, children, grandchildren, parents, and siblings; but may also, include other individuals and charities.

What is your level of confidence in our banking system? What estate planning initiatives have your considered? Are you interested in exploring your options? Share your questions and concerns with us here.