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Expand all panels | Collapse all panels Payable on death (POD) beneficiary basics Expand all panels | Collapse all panels What is the benefit of a payable on death (POD) beneficiary?A payable on death (POD) designation means your bank account automatically transfers to a beneficiary upon the death of all account owners and co-owners. Setting up a POD beneficiary allows you to plan for the future and make your financial wishes clear.
What accounts can have POD beneficiaries?Eligible accounts include checking, savings, certificate of deposit (CD), investment and individual retirement accounts (IRA).
These accounts can be individual or co-owned personal accounts and/ or sole proprietor small business accounts, but only the account owner can designate POD beneficiaries. Other types of small business accounts and Commercial Analyzed accounts are not eligible.
Can I have multiple beneficiaries?Yes, there is no limit to the number of POD beneficiaries allowed on an account. Each POD beneficiary will receive an equal share of the assets in an account at the time of the passing of the last owner on the account. For example, if there are 4 POD beneficiaries, each will receive 25% of the funds.
Note: In North Carolina, if the beneficiary is a business, only one POD beneficiary is allowed.
What if all POD beneficiaries pass away before the last owner does?If all POD beneficiaries pass away before the last account owner, the account owner should update or designate new POD(s) for the account. If that doesn’t happen, the account will be handled based on other governing documents like a will or trust, or revert to the rules for the state.
What happens if the account is overdrawn when the owner passes away?If the account is overdrawn when the owner or co-owner passes away, the POD beneficiary won't receive any funds, nor will we ask the POD beneficiary for funds.