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Payable upon death. How to manage?

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  • Payable upon death. How to manage?

    A few years ago, prior to going on an overseas trip, my parents opened an account "payable upon death". Considering it was a last minute thing, they admittedly didn't put much thought into it, and now it's sitting in a CD earning 1%.

    Does anyone have any experience with this sort of account? I am going to have them move it to betterment or something of that sort unless there are ways to better increase tax efficiency.

  • #2
    What was the purpose of the account? It's a very simple designation that some people use to avoid probate and give heirs access to cash to pay bills in the event of death. It can also result in an unequal distribution to other beneficiaries/heirs, often unintentional. Since your parents admittedly didn't put much thought into it, you might want to discuss whether there is a need for this account or if the money can be better applied to another goal.
    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087


    • #3
      Assuming the account is just POD to you, then if your parents are going to keep the account as POD, I would recommend that they add a contingent POD recipient in case you pre-decease them.

      FYI: I'm not giving legal advice. You are not my client. I am not your lawyer. My response to your question is probably worth what you paid for it. You don't get to sue me for anything. If you'd like to sue me, then hire me first. I am an estate planning attorney licensed in Washington and Oregon.