Best Account for your next of kin: Payable on death Account.

 

Due to stories about how difficult it is to receive a dead relatives funds as a "next of kin," we put out this post.

POD stands for Payable on Death, which is a type of bank account that transfers assets to a beneficiary after the account holder's death. POD accounts are also known as Totten trusts. 

How it works:

1. The account holder designates a beneficiary or beneficiaries to receive the funds in the account 

2. The account is secured, and the funds can't be accessed until the account holder dies 

3. The funds are immediately transferred to the beneficiary or beneficiaries after the account holder's death 

Benefits Of POD

1. POD accounts allow account holders to specify who will inherit their assets without probate proceedings 

2. POD accounts are a quick way to distribute assets 

3. POD accounts can give beneficiaries legal access to the money after the account holder's death 

How To set up a POD account 

Inform your bank or credit union that you want to set up a POD account

Complete a beneficiary designation form

Provide the name and contact information of the beneficiary