As we continue the series on “The Final Tithe” and how to include the Kingdom in our estate plan, I want to share with you a missed opportunity to easily name people or entities as beneficiaries. Beneficiary planning is so important and should carry I high importance in your estate plan. The first area I see people missing an opportunity to name beneficiaries is on their banking accounts. You can utilize a feature at your bank called Payable on Death (POD). A POD allows you to name beneficiaries. By naming beneficiaries, you can avoid sending those assets through costly probate. Another issue I see is on non-qualified investment accounts that are individually owned or jointly owned. You can add a feature called Transfer on Death (TOD) that will prevent those assets from being pushed into probate. More commonly known beneficiary designations are found on life insurance, annuities, and retirement accounts. It is extremely important to conduct a tax efficient review of your estate plan to retain as much of the asset(s) as possible without paying unnecessary taxes and attorney fees. We would be happy to assist you with your Biblically Responsible estate planning. You can reach Jay D Schurz at 888-226-7614 or by email at jschurz@vanderbiltsecurities.com.
What Is Payable On Death (POD)?
Payable on death (POD) is an arrangement between a bank or credit union and a client that designates beneficiaries to receive all of the client’s assets. The immediate transfer of assets is triggered by the death of the client.
What Is Transfer on Death?
The transfer on death designation lets beneficiaries receive assets at the time of the person’s death without going through probate. This designation also lets the account holder or security owner specify the percentage of assets each designated beneficiary receives, which helps the executor distribute the person’s assets after death. With TOD registration, the named beneficiaries have no access to or control over a person’s assets as long as the person is alive.
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