Payable on death accounts are one method for passing on assets after you pass away. If you have recently opened a brokerage, saving, or checking account, you might have been asked to provide the name of a beneficiary who is eligible to receive the account on your death.
A payable on death bank account is any financial account that lets you name one or more beneficiaries who are eligible to receive this account outside of probate after you pass away. This means that this asset immediately transfers to this person after proving that you have passed away without any further estate administration hassle or probate process. This is why you are presented with the option to nominate beneficiaries the same day you open an account.Â
During your life, you still retain control over this account, and heirs are not able to access it by being named only as a payable on death beneficiary. You can also alter, add, or remove beneficiaries as you deem fit.Â
Although naming someone as a beneficiary on a payable on death account is relatively easy, you might want to talk with your lawyer about potential problems with payable on death accounts and whether other methods are better based on your needs.Â
Make sure that you work with an estate planning attorney in Pasadena to verify that your payable on death accounts are consistent with the terms of your plan.
