frequently asked questions

Lesson: Check beneficiary/POD designations

Lesson: Check beneficiary/POD designations

Story: Rick’s wife is deceased, and he has two children, Jack & Jill. Jack always said he would take care of his dad, Rick, as he aged so Rick had a Will prepared leaving a disproportionate share of his estate to Jack and made Jack his Executor and Power of Attorney. Rick aged, got cancer, and needed help but Jack had followed his career out of state and could not help to care for his dad, Rick. Jill lived nearby and was happy to help her dad, Rick, as his health deteriorated. Rick updated his Will to leave Jill a disproportionate share of his estate along with making her Executor and Power of Attorney. Rick wanted to keep things simple, so he had an estate sale and then sold his house; everything Rick owned was reduced to cash and deposited at his bank. Rick passed away forgetting that he had set up his bank account with a Payable on Death (POD) to make the account payable to Jack upon his death. Jill started probate of Rick’s estate and found out that the bank account had a POD to her brother, Jack. Jack got everything and Jill got nothing, which is not what their dad, Rick, wanted. Rick’s Will had no control of the bank account because it was a non-probate asset.