Capital One POD (finally)

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bizlady

Full time employment: Posting here.
Joined
Mar 6, 2008
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For those interested, Capital One finally offers POD.

Log in and go to manage beneficiaries.
Your beneficiary becomes POD. If you enter multiples (by adding each one at a time), the account is split equally with the number you have. Not ideal, as it asks for the persons SS, but at least it is now available.
 
Sorry, just in case someone else is as dumb as I am (or got up as early as I did on a Saturday), is POD = Pay on Death?
 
Koolau said:
Sorry, just in case someone else is as dumb as I am (or got up as early as I did on a Saturday), is POD = Pay on Death?
Click to expand...

Yes, payable on death. That designation allows the funds to bypass probate and supersede a will or trust I believe.
 
bizlady said:
Yes, payable on death. That designation allows the funds to bypass probate and supersede a will or trust I believe.
Click to expand...

Thanks! Excellent info to have and to deal with before it's needed.

I can see that a provision like this would allow one to designate a "survivor" without the surviving person being able to write checks on the account. Heh, heh, I can think of folks I'd want to POD but not have check writing authority.:LOL:

Thanks!
 
Probate processing legal fees can be 3% of assets, so important to designate POD on all bank accounts.
 
bizlady said:
For those interested, Capital One finally offers POD.
Click to expand...
Thanks for posting. I opened one of these accounts and neglected to get the POD established...but done now!
 
POD is good but remember that POD is payable on death and not payable on disability. You need to have an incapacity plan in place and many banks do not honor general powers of attorney. That is why many people get living trusts. Conservatorships during life are more expensive than probate after death.
 
I’ve never quite understood difference between designating beneficiary, POD, and TOD. Its amazing how some institutions make it difficult to avoid probate. I guess they want a specific court order to protect them from liability. BofA is another one. Thanks for the info Bizlady.
 
jazz4cash said:
I’ve never quite understood difference between designating beneficiary, POD, and TOD. Its amazing how some institutions make it difficult to avoid probate. I guess they want a specific court order to protect them from liability. BofA is another one. Thanks for the info Bizlady.
Click to expand...

All about the money. Roughly 3% to the lawyers.
 
jazz4cash said:
I’ve never quite understood difference between designating beneficiary, POD, and TOD. Its amazing how some institutions make it difficult to avoid probate. I guess they want a specific court order to protect them from liability. BofA is another one. Thanks for the info Bizlady.
Click to expand...

My understanding is that the terms beneficiary, POD, TOD are a similar concept applied to different types of accounts.

Beneficiary was usually associated with life insurance policies and retirement accounts.

PODs and TODs are applied to bank accounts and brokerage accounts. Would need to verify which is which.

It is each states laws that establish these (at least for accounts that aren't governed by the Federal ERISA laws).

-gauss
 
Another thing to be aware of is the phrase "per stirpes" when setting up multiple beneficiaries. What it means is the proceeds will go that that person's heirs. Without that, if one of the 2 beneficiaries dies, the other gets all of it.
 
Thanks for sharing. I'll update mine at capital one. How about other online banks like Ally, AmEx, Discover banks ?
 
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