What is a P.O.D. (Payable on Death) account?
A Payable on Death (POD) beneficiary is the individual who is entitled to receive the funds in an account upon the death of the account holder(s). By designating a POD on an account, the funds in the account are payable upon the death of the primary and joint owners on the account. If more than one POD is named on a share, funds will be dispersed equally to the PODs. There is no limit to the number of beneficiaries that may be designated on an account and no age limitations for the POD beneficiaries.
The POD must be an individual(s) other than the member and/or joint owner(s). If more than one beneficiary is named, all surviving beneficiaries will receive an equal share. Corporations, charities and non-profit organizations are eligible to be named as POD. For business accounts, POD's are only allowed on Sole Proprietorships'. They are not allowed on Partnerships, LLC's or Corporations.
A POD may be added to any deposit account at any time by completing the Designation of Beneficiary Form. This form must be signed by both the primary member as well as any joint owners on the share to which PODs are being added. The name, social security number and date of birth of the beneficiary are needed to add a POD to an account. If the beneficiary is not a US citizen additional contact information will be needed in place of the social security number.
Members who have a Family Trust established have a choice of two options in naming the P.O.D. payee. The first option is naming the "trust"; for example "John D. Doe Revocable Living Trust u/t/d July 27, 2010". The "trust" must include the date the trust was established. The second option is to designate the successor trustee of the "trust" as a P.O.D. payee. The P.O.D. payee must be an individual other than the owner (s) and his/her social security number is provided for identification purposes only. For example : "John D. Doe, Successor Trustee of the Smith Family Trust", social security number 000-00-0000.
If there are any changes to the POD, it will be the responsibility of the account holders to update the designation with a new Designation of Beneficiary form. For IRA and HSA beneficiaries, contact the Credit Union to speak with an IRA Specialist to obtain more information.
How do I remove a POD (Payable on Death)/beneficiary from my account (excluding IRA and HSA)?
You will need to complete the Designation of Beneficiary form and it must be signed by the primary member and any joint owners on the account. This form is used to: designate new beneficiaries, add beneficiaries by listing new and existing beneficiaries and remove existing beneficiaries. Please remember to include your POD's social security number on the form.
