The Elder and Disability Law Firm, APC
What Are Payable on Death Accounts?
When you arrange for the distribution of assets to your loved ones via the use of a last will everything is held up until the estate has been probated.
Probate is the legal process of estate administration and it takes place under the auspices of the probate court. In addition to the fact that the heirs to the estate do not receive their inheritances until it has been probated and closed probate can be expensive. This process also opens the door for those who would be interested in challenging your wishes and this is another potential difficulty that it presents.
The above having been stated there are ways to transfer assets to your loved ones after your death directly outside of the probate process. One of these would be to open payable on death or transfer on death accounts.
POD and TOD accounts are offered by banks and credit unions and some brokerages. These accounts are rather self-explanatory; you name a beneficiary or beneficiaries when you are creating the account and when you pass away your beneficiary assumes ownership of the resources, and this transaction is not subject probate.
There can be certain tax applications involved depending on the specifics of the situation and this is something to discuss with an Inland Empire estate planning attorney. The way that veterans need to deal with this and other issues under probate can be planned correctly through an estate planning attorney as well. Veterans need to know the differences.
Creating a payable on death account is a simple and straightforward way to transfer assets in a quick and efficient manner and they are certainly something to take into consideration when you are making preparations for the future.