If I named my child as a POD (pay on death) or FBO (for benefit of) beneficiary of a bank or stock account and that child is now in financial trouble, can I lose the accounts?
The short answer is “No.”
POD designations on an account do not make that account the property of your child now and his or her bankruptcy or a lawsuit will not subject your accounts to claims by his or her creditors.
However, there are three more things that you need to know about POD (pay on death) and FBO (for benefit of) designations and accounts to be sure that your accounts are safe and that your child will also be protected.
Have questions about your estate planning and how your POD or beneficiary designations work with your estate planning documents?
Need to update your will, power of attorney, medical powers, or living wills and to coordinate them with your bank and stock accounts.
Mention this blog post to receive a free consultation with David Frees or one of the trust and estate attorneys. Call Donna or Denise for more information at 610-933-8069 or email email@example.com