When you are ready to work on your estate plan, you might discover many options you never heard of before. Wills and trusts are important features that many people are aware of, but there are other ways you can plan for the future that might be relevant to you as well. One aspect of some Illinois estate plans that is less commonly known is called a payable-on-death (POD) account.
This valuable tool allows you to transfer assets directly to named beneficiaries without going through probate. POD accounts can simplify the transfer of certain assets, and a qualified Illinois estate planning lawyer can explain their benefits, limitations, and potential impact on your broader estate plan.
What Is a Payable-on-Death Account?
A payable-on-death POD account is a financial account that allows the account holder to designate one or more beneficiaries who will receive the funds in that account when the holder dies. POD accounts can be checking, savings, or certificate of deposit (CD) accounts. The named beneficiary has no access to or control over the account until the holder’s death.